annual report and audited financial statements for …

Generali Invest CEE Plc

(An open-ended umbrella investment company with variable capital and with segregated liability between Funds incorporated with limited liability in Ireland under the Companies Act 2014 with

registration number 468417)

ANNUAL REPORT

AND AUDITED FINANCIAL STATEMENTS

For the financial year ended

31 December 2015


2

CONTENTS

Page

General Information 3

Directors’ Report 4-6

Report of the Custodian to the Shareholders 7

Independent Auditor’s Report 8-9

Generali CEE Cash & Bond Fund – Investment Manager’s Report 10-11 – Schedule of Investments 12-14

Generali CEE Corporate Bonds Fund – Investment Manager’s Report 15-18 – Schedule of Investments 19-21

Generali CEE Global Brands Fund – Investment Manager’s Report 22-24 – Schedule of Investments 25-27

Generali CEE New Economies Fund – Investment Manager’s Report 28-29 – Schedule of Investments 30-32

Generali CEE Oil Industry & Energy Production Fund – Investment Manager’s Report 33-34 – Schedule of Investments 35-37

Generali CEE Commodity Fund – Investment Manager’s Report 38-39 – Schedule of Investments 40-41

Generali CEE Emerging Europe Fund – Investment Manager’s Report 42-44 – Schedule of Investments 45-47

Generali CEE Emerging Europe Bond Fund – Investment Manager’s Report 48-49 – Schedule of Investments 50-51

Generali CEE Balanced Fund – Investment Manager’s Report 52-55 – Schedule of Investments 56-59

Generali CEE Dynamic Balanced Fund – Investment Manager’s Report 60-63 – Schedule of Investments 64-67

Statement of Financial Position 68-73

Statement of Comprehensive Income 74-79 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 80-85

Statement of Cash Flows 86-91

Notes to the Financial Statements 92-136

Schedule of Significant Portfolio Changes (unaudited) 137-146


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GENERAL INFORMATION

Directors Independent Auditors

Mr. David Hammond (Irish)* Mr. Simon O'Sullivan (Irish)* Ms. Alexandra Hájková (Czech) Mr. Karel Novák (Czech)*** Mr. Radek Moc (Czech) ****** Mr. Patrik Hudec (Czech) **** Mr. Martin Brož (Czech) *****

Ernst & Young Chartered Accountants Ernst & Young Building Harcourt Centre Harcourt Street Dublin 2 Ireland

Registered Office Administrator

33 Sir John Rogerson’s Quay Dublin 2 Ireland

RBC Investor Services Ireland 4th Floor One George’s Quay Plaza George’s Quay Dublin 2 Ireland

Investment Manager Manager and Distributor

Generali Investments CEE a.s. Na Pankraci 1658/121 P.O. Box 39 140 21 Prague 4 Czech Republic

ČP INVEST investiční společnost, a.s.** Na Pankráci 1658/121 140 21 Prague Czech Republic

Secretary Legal Advisors

Tudor Trust Limited 33 Sir John Rogerson’s Quay Dublin 2 Ireland

Dillon Eustace 33 Sir John Rogerson’s Quay Dublin 2 Ireland

Custodian Management Support Services Provider

RBC Investor Services Bank S.A., Dublin Branch 4th Floor One George’s Quay Plaza George’s Quay Dublin 2 Ireland

Bridge Consulting Limited 33 Sir John Rogerson’s Quay Dublin 2 Ireland

Paying agent for Polish market

Raiffeisen Bank Polska S.A. ul. Piekna 20 00-549 Warszawa Poland

All Directors act in a non-executive capacity. *Independent director **Appointed also as Manager 31 July 2015 and name changed to Generali Investments CEE, investiční společnost, a.s.on 1st January 2016. ***Resigned as a Director from the Board 28 January 2016. ****Appointed as a Director to the Board on 13th November 2015. *****Appointed as a Director to the Board on 24th November 2015. ****** Resigned as a Director from the Board on 11 April 2016


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DIRECTORS’ REPORT For the financial year ended 31 December 2015 The Directors present their report together with the audited Financial Statements for the year ended 31 December 2015. Directors’ responsibilities statement

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable Irish law and in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union, including the accounting standards issued by the International Accounting Standards Board.

Irish company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of Generali Invest CEE Plc (“the Company”) and of the profit or loss of the Company for that financial year.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently; • make significant estimates and judgements that are reasonable and prudent; • state that the financial statements comply with IFRS as adopted by the European Union; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Company will continue in business.

The Directors confirm that they have complied with the above requirements in preparing the financial statements. The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Company and which enable them to ensure that the financial statements are prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union and comply with the provisions of the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015. The measures taken by the Directors to ensure compliance with the Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures and the employment of competent persons. In this regard the Directors have delegated the administration of the Company to RBC Investor Services Ireland Limited (“the Administrator”) which includes the responsibility of maintaining adequate accounting records. The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors have engaged RBC Investor Services Bank S.A., Dublin Branch, to act as Custodian with a duty to safeguard the assets of the Company. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Principal activities The Company was incorporated on 10 March 2009 and was authorised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) by the Central Bank of Ireland. The Company is organised as an investment company with variable capital pursuant to the UCITS Regulations. The Company is an umbrella fund incorporated with limited liability, segregated between Funds.

The Company's principal activity is to provide the Funds’ investors with a return linked to the investment objective of each Fund as defined in the relevant Fund’s Supplement to the Prospectus. Review of business and future developments

Please refer to the Investment Manager’s Reports for a review of the business and future developments.


5

DIRECTORS’ REPORT (continued) For the financial year ended 31 December 2015

Risk management objectives and policies

For details of risk management objectives and policies, please refer to note 9.

Results

The financial position and results for the financial year are set out on pages 68 to 79.

Significant events during the financial year The Company changed from a self-managed company to a managed company as of 31 July 2015. The new Manager of the Company is ČP INVEST investiční společnost, a.s. which is also the Global Distributor. The Generali CEE Emerging Europe Bond share class A PLN was launched on 11 January 2015. Mr. Patrik Hudec was appointed as a Director to the Board on 13th November 2015. Mr. Martin Brož was appointed as a Director to the Board on 24th November 2015. One redeemable non-participating share of no par value in Generali Invest CEE was transferred from Alexandra Hajkova to Generali CEE Holding B.V. as of 9 December 2015. The new holder of this non-participating share holds the share as nominee of and in trust for ČP INVEST investiční společnost, a.s.. Events since financial year end

ČP INVEST investiční společnost, a.s. merged with Generali Investments CEE a.s. effective 1 January 2016 and it has changed its name to Generali Investments CEE, investiční společnost, a.s.. In addition to the Merger, there are related changes to the names of the sub-funds for the Company (the “Sub-Funds ”) as set out below: (i) Generali CEE Cash & Bond Fund has changed to Premium Conservative Fund, Generali Invest CEE plc;

(ii) Generali CEE Corporate Bonds Fund has changed to Corporate Bonds Fund, Generali Invest CEE plc; (iii) Generali CEE Global Brands Fund has changed to Global Equity Fund, Generali Invest CEE plc; (iv) Generali CEE New Economies Fund has changed to New Economies Fund, Generali Invest CEE plc; (v) Generali CEE Oil Industry & Energy Production Fund has changed to Oil and Energy Industry Fund,

Generali Invest CEE plc;

(vi) Generali CEE Commodity Fund has changed to Commodity Fund, Generali Invest CEE plc; (vii) Generali CEE Emerging Europe Fund has changed to Emerging Europe Fund, Generali Invest CEE plc; (viii) Generali CEE Emerging Europe Bond Fund has changed to Emerging Europe Bond Fund, Generali Invest

CEE plc;

(ix) Generali CEE Balanced Fund has changed to Premium Balanced Fund, Generali Invest CEE plc; and (x) Generali CEE Dynamic Balanced Fund has changed to Dynamic Balanced Fund, Generali Invest CEE plc. Mr. Karel Novák resigned as a Director from the Board on 28 January 2016. Mr. Radek Moc resigned as a Director from the Board on 11 April 2016.

The Prospectus and Supplements have been amended to take into account a number of changes for structure, marketing and operational reasons, in line with the Company’s outlook.


10

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Cash & Bond Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve appreciation of assets in the short-term and mid-term horizon over the level of short-term interest rates, with high liquidity and low volatility of assets.

The net asset value gradually increased during 2015 and crossed the EUR 21.4 million mark at the end of 2015. It means that assets under management almost doubled in 2015. For the whole year 2015 the Fund posted above average performance despite the challenging environment. Weakness in the global economy has caused widening credit spreads moreover and both government and corporate bonds were affected by high volatility. The Fund’s good performance (1.36 %) was driven mainly by positive bond selection. Our operations led to the improvement of the average credit rating, of the Fund’s holdings, as we decreased our exposure in Russian corporate bonds and on the other hand we were buying bonds from the CEE region and US banks with better credit rating profiles. The average credit rating of the bond portfolio varied between BBB and BBB-, and the average duration increased to the level to 0.84 years by the end of 2015.

The Fund seeks to achieve its objective by investing primarily in a diversified portfolio (mainly by issuer) of floating and fixed Eurobonds, corporate bonds and bonds issued by banks. An additional part of the portfolio is formed by government bonds and the rest is held in cash. There was no significant change in the investment policy during 2015.

With only one exception all bonds in the portfolio which are rated by Standard & Poor’s or other reputable rating agencies and deemed to be of equivalent quality have an average rating varied between BBB and BBB-. The average modified duration of the Fund is less than one year.

In seeking to achieve the investment objective, the Fund uses a variety of techniques including fundamental analysis of issuers, analysis and prediction of macro-economic indicators, interest rates, foreign exchange rates, yield curve and analysis of regional political situations.

The Fund uses derivatives such as foreign exchange forwards and swaps (currency forwards and currency swaps) in order to hedge the currency exposure of the assets of the Fund in the range of 85–105%.

GENERALI CEE CASH AND BOND A PLN Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 48.11 1,515,706.36 364,537.30 31/12/2014 49.39 3,043,426.81 708,088.20 31/01/2015 49.70 2,938,701.48 701,824.71 28/02/2015 49.89 3,100,506.81 747,060.03 31/03/2015 50.09 3,220,144.85 790,788.38 30/04/2015 50.23 3,294,928.54 810,763.74 31/05/2015 50.31 3,417,743.92 829,664.99 30/06/2015 50.37 3,473,729.03 828,974.72 31/07/2015 50.49 3,132,960.78 755,114.81 31/08/2015 50.43 3,047,976.60 721,030.77 30/09/2015 50.47 3,185,239.99 750,421.18 31/10/2015 50.64 3,188,753.78 749,363.68 30/11/2015 50.78 3,167,518.15 741,741.22 31/12/2015 50.83 3,112,223.74 725,503.71


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INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Cash & Bond Fund (continued) GENERALI CEE CASH AND BOND A EUR Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 10.96 8,925,456.87 8,925,456.87 31/12/2014 11.02 10,806,309.30 10,806,309.30 31/01/2015 11.07 11,240,533.33 11,240,533.33 28/02/2015 11.09 11,223,726.46 11,223,726.46 31/03/2015 11.12 12,757,468.15 12,757,468.15 30/04/2015 11.14 14,139,146.22 14,135,460.16 31/05/2015 11.15 15,784,415.49 15,786,944.70 30/06/2015 11.14 15,607,995.85 15,607,995.85 31/07/2015 11.16 15,608,919.57 15,608,919.57 31/08/2015 11.14 15,831,112.92 15,831,112.92 30/09/2015 11.13 13,415,749.27 13,415,749.27 31/10/2015 11.16 11,006,632.87 11,006,632.87 30/11/2015 11.18 10,453,194.47 10,458,491.56 31/12/2015 11.17 10,253,690.29 10,253,690.29

GENERALI CEE CASH AND BOND A CZK Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 261.95 34,046,901.90 1,243,844.17 31/12/2014 261.36 52,718,277.92 1,902,136.29 31/01/2015 262.13 135,387,872.40 4,880,898.03 28/02/2015 262.50 167,562,347.16 6,095,973.98 31/03/2015 263.16 191,265,033.89 6,940,926.09 30/04/2015 263.59 204,823,850.17 7,442,785.38 31/05/2015 263.66 214,698,619.97 7,816,596.44 30/06/2015 263.33 225,187,673.72 8,260,923.66 31/07/2015 263.78 234,741,658.77 8,667,711.19 31/08/2015 263.10 245,587,621.48 9,082,248.77 30/09/2015 262.51 253,222,748.69 9,318,143.50 31/10/2015 263.09 261,658,215.91 9,657,181.59 30/11/2015 263.40 268,445,809.90 9,917,603.58 31/12/2015 262.65 280,530,643.19 10,381,673.88

The future market outlook for the Fund

The bond markets remain in balance for 2016, with many mutually offsetting risks and influences. We expect the ECB to continue with and even expand its quantitative easing program which is likely to support risk assets. Weakness in emerging markets and commodities is expected to continue to weigh on corporate earnings but should not signal a sharp decline in investment grade credit quality. With slow, positive growth and a supportive central bank, European investment grade credit should be a relative safe haven. The banking sector is expected to continue to build resilience through higher capital buffers.

However, political risk in Europe remains significant, with several important elections in 2016 including the Brexit vote expected in the second quarter. Geopolitical risks are also increasing and have a potential to unsettle markets. Significant tail risks remain, keeping positioning conservative. The year 2016 is likely to be more characterised by individual names and sector picking compared to 2015.


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SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Cash and Bond Fund Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets Listed securities : bonds AUSTRIA Erste Group Bank AG 0.758% 19/07/2017 EMTN 300,000 EUR 289,050 293,901 1.38Erste Group Bank AG 3.375% 28/03/2017 EMTN 800,000 EUR 843,788 828,512 3.88Raiffeisen Bank International AG 0.789% 27/07/2017 EMTN 500,000 EUR 500,000 498,210 2.33

1,632,838 1,620,623 7.59

BULGARIA Bulgaria Government International Bond 4.25% 09/07/2017 2,000,000 EUR 2,161,000 2,129,490 9.97

2,161,000 2,129,490 9.97

CZECH REPUBLIC Cetelem CR AS 0.92% 27/06/2016 5,000,000 CZK 193,554 185,488 0.87

193,554 185,488 0.87

FINLAND Neste Oyj 4% 28/03/2017 400,000 EUR 417,800 414,681 1.94

417,800 414,681 1.94

HUNGARY Hungary Government International Bond 3.5% 18/07/2016 1,250,000 EUR 1,292,810 1,273,250 5.96Hungary Government International Bond 4.375% 04/07/2017 1,000,000 EUR 1,073,832 1,062,253 4.97MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 1,300,000 EUR 1,384,874 1,327,557 6.21MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 500,000 EUR 532,660 527,312 2.47

4,284,176 4,190,372 19.61

ITALY UniCredit SpA 4.875% 07/03/2017 EMTN 500,000 EUR 533,135 526,750 2.47

533,135 526,750 2.47

LUXEMBOURG Sberbank of Russia Via SB Capital SA 4.95% 07/02/2017 500,000 USD 455,804 465,323 2.18Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 500,000 USD 468,303 482,206 2.26

924,107 947,529 4.44

NETHERLANDS NE Property Cooperatief UA 3.75% 26/02/2021 100,000 EUR 99,597 99,304 0.46Petrobras Global Finance BV 1.9896% 20/05/2016 600,000 USD 436,457 539,906 2.53Volkswagen International Finance NV 1.875% 15/05/2017 EMTN 200,000 EUR 203,318 202,264 0.95

739,372 841,474 3.94


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SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Cash and Bond Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets POLAND PZU Finance AB 1.375% 03/07/2019 300,000 EUR 298,068 299,997 1.40

298,068 299,997 1.40

ROMANIA Romanian Government International Bond 5.25% 17/06/2016 1,350,000 EUR 1,430,813 1,380,252 6.46

1,430,813 1,380,252 6.46

SLOVENIA Slovenska izvozna in razvojna banka dd 0.875% 04/08/2018 120,000 EUR 119,618 121,716 0.57Slovenska izvozna in razvojna banka dd 3.232% 29/03/2016 EMTN 200,000 EUR 200,000 201,950 0.94

319,618 323,666 1.51

SWEDEN PGNIG Finance AB 4% 14/02/2017 EMTN 1,100,000 EUR 1,167,150 1,138,346 5.33

1,167,150 1,138,346 5.33

TURKEY Export Credit Bank of Turkey 5.375% 04/11/2016 500,000 USD 484,313 469,843 2.20Turkey Government International Bond 5.5% 16/02/2017 1,350,000 EUR 1,466,525 1,422,534 6.66Turkey Government International Bond 7% 26/09/2016 1,400,000 USD 1,277,315 1,335,749 6.25Turkiye Is Bankasi 5.1% 01/02/2016 500,000 USD 475,622 461,424 2.16

3,703,775 3,689,550 17.27

UNITED STATES OF AMERICA Citigroup Inc 1.327% 10/02/2019 600,000 EUR 596,400 600,000 2.81Goldman Sachs Group Inc 0.591% 29/05/2020 EMTN 800,000 EUR 795,372 796,255 3.73Morgan Stanley 0.609% 19/11/2019 EMTN 500,000 EUR 501,555 501,907 2.35

1,893,327 1,898,162 8.89

Total listed securities : bonds 19,698,733 19,586,380 91.69

Bond interest accrued 404,069 1.89 Financial assets at fair value through profit or lo ss 19,698,733 19,990,449 93.58


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SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Cash and Bond Fund (continued) Fair Value % of NetDescription EUR Assets Financial Derivative Instruments Open Forward Foreign Currency Contracts Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets04-Jan-16 RBC IS Bank Luxembourg EUR 15,447 CZK 417,814 (15) -04-Jan-16 RBC IS Bank Luxembourg EUR 1,497 CZK 40,479 (1) -04-Jan-16 RBC IS Bank Luxembourg EUR 28 PLN 118 - -04-Jan-16 RBC IS Bank Luxembourg EUR 14 CZK 385 - -05-Jan-16 RBC IS Bank Luxembourg EUR 1,973 CZK 53,363 (1) -05-Jan-16 RBC IS Bank Luxembourg EUR 57,140 CZK 1,545,172 (40) -05-Jan-16 RBC IS Bank Luxembourg EUR 121 PLN 516 1 -05-Jan-16 RBC IS Bank Luxembourg PLN 880 EUR 207 (2) -05-Jan-16 RBC IS Bank Luxembourg EUR - CZK 5 - -05-Jan-16 RBC IS Bank Luxembourg EUR 4 CZK 108 - -12-Jan-16 RBC IS Bank Luxembourg EUR 4,719,319 USD 5,000,000 117,885 0.5512-Jan-16 RBC IS Bank Luxembourg EUR 192,479 CZK 5,200,000 64 -29-Jan-16 RBC IS Bank Luxembourg PLN 3,119,825 EUR 734,653 (8,437) (0.04)29-Jan-16 RBC IS Bank Luxembourg CZK 278,424,597 EUR 10,326,958 (26,055) (0.12)

Net profit on open forward foreign exchange contrac ts 83,399 0.39

Net financial derivative instruments 83,399 0.39

Cash and other net assets 1,287,020 6.03

Total net assets attributable to holders of redeema ble participating shares 21,360,868 100.00


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INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Corporate Bonds Fund

The Investment objective of the Fund How the Fund achieves its investment objective The investment objective of the Fund is to seek an attractive level of income and to achieve an appreciation of the value of the assets in the medium term above the medium term European interest rates together with a medium degree of volatility. The Fund achieves its objective by using both a variety of techniques including fundamental analysis of issuers, analysis and prediction of macro-economic indices, interest rates, foreign exchange rates, yield curve and analysis of regional political situation and by investing primarily in debt securities and debentures issued by corporations worldwide (including treasury paper and commercial paper) listed or traded on a Recognized Exchange in major global markets. The Fund also invests in debt securities issued by governments and their agencies, instrumentalities and political sub-divisions, supranational and local and public authorities. Such instruments may be fixed or floating rate debt securities and mainly rated B- to BBB+ by Standard & Poor’s or another reputable rating agency. The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and swaps) and they are used for hedging purposes. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The performance of developed market corporate bonds fell short of expectations in 2015 for a number of reasons. Some fundamental figures (debt leverage, interest coverage, etc.) have started to deteriorate since the second half of 2015 not only due to depressed commodity prices but also due to the central banks’ equity-friendly policy, finally leading to the rise in global speculative-grade default rate to 3.4% at the end of 2015, up from 2.2% recorded year ago. In addition, increasing risk aversion on global equity markets and elevated volatility significantly contributed to the widening in credit spreads on both developed and emerging markets. Despite the number of adverse headwinds, the Fund managed to achieve an attractive return of 6.5%. Apart from an active tactical strategy (altering the Fund's composition and average duration depending on short-term market influences) and taking advantage of a high carry of non-investment grade bonds, we have been keeping a significant exposure in high-yield i) Russian corporate bonds, profiting from the "Minsk agreement" and by a ceasefire in Eastern Ukraine and also from balance sheet deleveraging in some cases, ii) Chinese developer's bonds, which benefitted from easing in PBoC monetary policy and ii) Kazakh quasi sovereign bonds.

GENERALI CEE CORPORATE BOND A EUR Date NAV per Share Market Value (EUR) Market Value (EUR)

31/12/2013 12.77 7,313,159.64 7,313,159.64 31/12/2014 12.14 7,545,549.31 7,545,549.31 31/01/2015 12.15 7,139,879.01 7,139,879.01 28/02/2015 12.39 7,215,471.64 7,215,471.64 31/03/2015 12.57 7,371,397.95 7,371,397.95 30/04/2015 12.72 7,493,085.23 7,485,693.82 31/05/2015 12.81 7,482,420.89 7,488,463.70 30/06/2015 12.80 7,523,848.60 7,523,848.60 31/07/2015 12.85 7,351,361.61 7,351,361.61 31/08/2015 12.74 7,248,598.76 7,248,598.76 30/09/2015 12.74 7,156,490.94 7,156,490.94 31/10/2015 12.91 6,778,570.35 6,778,570.35 30/11/2015 13.01 6,595,068.93 6,596,118.35 31/12/2015 12.93 6,388,634.07 6,388,634.07


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INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Corporate Bonds Fund (continued)

GENERALI CEE CORPORATE BOND A CZK

Date NAV per Share Market Value (CZK) Market Value (EUR) 19/12/2013 265.23 3,063.60 110.77 31/12/2014 258.58 95,444,838.20 3,443,759.88 31/01/2015 258.52 195,354,860.89 7,042,781.15 28/02/2015 263.33 231,219,965.50 8,411,859.33 31/03/2015 267.29 231,390,052.09 8,397,045.80 30/04/2015 270.45 228,651,028.12 8,307,403.18 31/05/2015 272.16 239,699,203.27 8,735,150.99 30/06/2015 271.78 250,317,475.65 9,182,800.83 31/07/2015 272.99 260,535,656.53 9,620,140.87 31/08/2015 270.13 269,339,849.48 9,960,646.64 30/09/2015 269.85 287,280,402.36 10,571,404.14 31/10/2015 273.39 298,856,320.22 11,030,075.03 30/11/2015 275.30 307,371,976.87 11,356,331.04 31/12/2015 272.92 317,014,933.95 11,731,857.96

GENERALI CEE CORPORATE BOND A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 52.93 5,087,473.10 1,223,570.58 31/12/2014 51.23 3,793,495.01 882,600.18 31/01/2015 51.38 3,725,124.11 889,639.24 28/02/2015 52.42 4,085,264.02 984,335.03 31/03/2015 53.30 4,364,786.83 1,071,884.30 30/04/2015 53.95 5,604,711.61 1,380,687.65 31/05/2015 54.39 7,758,684.84 1,836,309.80 30/06/2015 54.39 8,446,961.06 2,015,792.57 31/07/2015 54.68 9,481,587.26 2,285,278.20 31/08/2015 54.24 8,808,764.80 2,083,805.52 30/09/2015 54.33 8,388,845.29 1,976,355.69 31/10/2015 55.11 9,821,485.62 2,308,069.27 30/11/2015 55.56 10,279,457.25 2,406,404.96 31/12/2015 55.34 11,070,134.03 2,580,606.02

GENERALI CEE CORPORATE BOND B PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 51.14 88,875.92 21,375.24 31/12/2014 47.02 66,154.83 15,391.68 31/01/2015 47.11 67,475.66 16,114.63 28/02/2015 48.06 69,577.67 16,764.58 31/03/2015 48.86 71,461.72 17,549.24 30/04/2015 49.46 69,044.59 17,056.81 31/05/2015 49.90 57,413.28 13,953.64 30/06/2015 49.91 57,962.38 13,832.21 31/07/2015 50.16 54,043.74 13,025.77 31/08/2015 49.75 78,164.33 18,490.59 30/09/2015 49.83 78,787.01 18,561.69 31/10/2015 50.51 79,692.24 18,727.84 30/11/2015 50.99 78,471.03 18,373.09 31/12/2015 50.75 78,350.29 18,264.57


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INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Corporate Bonds Fund (continued)

GENERALI CEE CORPORATE BOND B CZK Date NAV per Share Market Value (CZK) Market Value (EUR)

31/12/2013 269.34 109,585,085.75 4,003,499.95 31/12/2014 247.50 30,817,559.17 1,111,933.09 31/01/2015 247.43 29,701,610.86 1,070,779.32 28/02/2015 252.33 30,274,982.95 1,101,413.96 31/03/2015 256.00 30,042,017.86 1,090,211.95 30/04/2015 258.93 29,773,473.50 1,084,707.39 31/05/2015 260.92 29,939,895.91 1,092,402.70 30/06/2015 260.60 29,855,399.53 1,095,233.91 31/07/2015 261.62 29,800,284.44 1,100,359.69 31/08/2015 258.78 29,346,812.26 1,085,295.13 30/09/2015 258.71 28,687,196.29 1,055,637.43 31/10/2015 262.01 28,576,080.36 1,054,675.07 30/11/2015 263.94 27,998,260.08 1,035,030.06 31/12/2015 261.84 27,815,225.44 1,029,365.62

GENERALI CEE CORPORATE BOND B EUR

Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 11.11 948,329.74 948,329.74 31/12/2014 10.19 803,753.68 803,753.68 31/01/2015 10.20 790,417.78 790,417.78 28/02/2015 10.40 798,704.61 798,704.61 31/03/2015 10.56 794,804.74 794,804.74 30/04/2015 10.68 807,254.61 807,941.61 31/05/2015 10.76 809,070.96 809,767.47 30/06/2015 10.75 812,050.63 812,050.63 31/07/2015 10.79 815,814.25 815,814.25 31/08/2015 10.69 809,938.43 809,938.43 30/09/2015 10.70 810,014.67 810,014.67 31/10/2015 10.84 594,551.79 594,551.79 30/11/2015 10.92 568,369.54 568,796.27 31/12/2015 10.86 561,897.99 561,897.99

The future market outlook for the Fund Looking ahead, we anticipate 2016 to be characterized by a mediocre, albeit resilient economic recovery in the EU, driven by the ECB's QE, low commodity prices and the weak euro. The US economy is starting to look fragile, due to an accelerated deterioration in the manufacturing sector (driven down by the fall in oil prices, somewhat weaker export demand from EM and a strong USD) and more recently also due to weakening in some of the services sectors. The economic outlook for commodity importing emerging economies is mixed. While Asian economies are negatively influenced by an ongoing slowdown in China, the CEE region profits from the EMU economic recovery. On the other hand, commodity-exporting emerging economies are set to contract further, due to the broad-based commodity oversupply contributing to depreciation in local currencies, an increase in inflation and hence restrictive monetary policies in many cases. Low energy prices and a still negative output gap will continue to keep underlying inflation low in developed economies. Regarding central bank policy, we expect ongoing strong support from major central banks, including the ECB, the Bank of Japan and the People’s Bank of China. In the case of the Fed, given the accelerated deterioration in the US economy, the recently announced gradual normalization of monetary policy is increasingly uncertain.


18

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Corporate Bonds Fund (continued) The challenges for bond investors remain substantial. Core yields on both sides of the Atlantic are likely to remain in a narrow trading range in 2016 as concerns about global growth and an accommodative monetary policy stance persist. With yields on government bonds and IG credit already depressed, the only way to reach an attractive total return is to invest in non-investment grade credits. Unfortunately, there are a number of reasons to remain bearish for credit for 2016. Firstly, concerns about the global economy are unlikely to vanish. Secondly, increasing volatility on equity markets generally widens credit spreads. Thirdly, Moody's forecast that the global speculative-grade default rate will continue to rise to 3.9% by the end of 2016, driven by the commodity sectors.

In this environment the investment strategy will be based mainly on a selection of fundamentally strong and liquid credit names. Similar to past years we are also going profit from high carry of non-investment grade credits, where we will offset the higher fundamental risk by a shorter duration. Moreover, we have already implemented (and are going to continue with) a more active tactical strategy, i.e. we alter the Fund's composition and average duration depending on short-term market influences.


19

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Corporate Bonds Fund Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets Listed securities : bonds AUSTRIA Erste Group Bank AG 0.758% 19/07/2017 EMTN 800,000 EUR 766,396 783,735 3.51

766,396 783,735 3.51

BRAZIL Bertin SA / Bertin Finance Ltd 10.25% 05/10/2016 100,000 USD 100,005 95,278 0.43 JBS SA 10.5% 04/08/2016 500,000 USD 423,864 475,237 2.13

523,869 570,515 2.56

CAYMAN ISLANDS Agile Property Holdings Ltd 8.875% 28/04/2017 300,000 USD 228,887 279,619 1.25 Geely Automobile Holdings Ltd 5.25% 06/10/2019 200,000 USD 173,692 190,095 0.85 Shimao Property Holdings Ltd 6.625% 14/01/2020 400,000 USD 372,060 384,207 1.72

774,639 853,921 3.82

CROATIA Croatia Government International Bond 6.25% 27/04/2017 400,000 USD 357,036 381,971 1.71 Croatia Government International Bond 6.75% 05/11/2019 400,000 USD 385,575 395,342 1.77

742,611 777,313 3.48

GREAT BRITAIN International Personal Finance PLC 5.75% 07/04/2021 EMTN 600,000 EUR 596,921 555,600 2.49 International Personal Finance PLC 9% 25/07/2016 EMTN 4,000,000 CZK 157,140 149,753 0.67 Jaguar Land Rover Automotive PLC 4.125% 15/12/2018 200,000 USD 176,136 185,722 0.83

930,197 891,075 3.99

IRELAND Alfa Bank AO Via Alfa Bond Issuance PLC 7.875% 25/09/2017 800,000 USD 695,462 773,400 3.47 Bank Otkritie Financial Corp OJSC via OFCB Capital PLC 7.25% 25/04/2018 800,000 USD 717,324 745,930 3.34 Gazprombank OJSC Via GPB Eurobond Finance PLC 3.984% 30/10/2018 300,000 EUR 280,505 293,993 1.32 Metalloinvest Finance Ltd 6.5% 21/07/2016 850,000 USD 722,895 793,094 3.55 Novolipetsk Steel via Steel Funding Ltd 4.45% 19/02/2018 900,000 USD 709,786 821,051 3.68 Russian Railways via RZD Capital PLC 5.739% 03/04/2017 EMTN 650,000 USD 562,906 609,943 2.73 VEB-Leasing OAO via VEB Leasing Invest Ltd 5.125% 27/05/2016 400,000 USD 375,090 367,438 1.65

4,063,968 4,404,849 19.74


20

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Corporate Bonds Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

KAZAKHSTAN Development Bank of Kazakhstan JSC 4.125% 10/12/2022 600,000 USD 481,694 488,442 2.19 Intergas Finance BV 6.375% 14/05/2017 546,000 USD 482,773 514,601 2.31 KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 700,000 EUR 657,975 658,725 2.95 KazMunayGas National Co JSC 7% 05/05/2020 300,000 USD 287,112 293,199 1.31 KazMunayGas National Co JSC 9.125% 02/07/2018 EMTN 100,000 USD 99,652 101,580 0.46 Natsionalnaya Kompaniya Kazakhstan Engineering AO 4.55% 03/12/2016 500,000 USD 375,807 444,767 1.99 Samruk-Energy JSC 3.75% 20/12/2017 EMTN 600,000 USD 457,112 541,287 2.43

2,842,125 3,042,601 13.64

LUXEMBOURG ALROSA Finance SA 7.75% 03/11/2020 800,000 USD 737,417 777,594 3.49 Gazprom OAO Via Gaz Capital SA 5.136% 22/03/2017 200,000 EUR 192,925 204,200 0.92 Home Credit & Finance Bank OOO Via Eurasia Capital SA 9.375% 24/04/2020 400,000 USD 308,900 342,447 1.53 Russian Standard Bank Via Russian Standard Finance SA 7.561% 01/12/2016 50,000 USD 37,002 35,211 0.16 Sberbank of Russia Via SB Capital SA 5.4% 24/03/2017 EMTN 800,000 USD 651,707 749,951 3.36 Severstal OAO Via Steel Capital SA 4.45% 19/03/2018 EMTN 200,000 USD 182,693 184,249 0.83 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 750,000 USD 673,009 723,308 3.24

2,783,653 3,016,960 13.53

NETHERLANDS Halyk Savings Bank of Kazakhstan JSC 7.25% 03/05/2017 850,000 USD 685,368 808,447 3.62 Home Credit BV 6.25% 22/06/2016 9,000,000 CZK 352,983 334,142 1.50 Kazakhstan Temir Zholy Finance BV 6.375% 06/10/2020 200,000 USD 183,987 181,939 0.82 Kazakhstan Temir Zholy Finance BV 7% 11/05/2016 300,000 USD 280,112 278,978 1.25 NE Property Cooperatief UA 3.75% 26/02/2021 200,000 EUR 199,194 198,608 0.89 Petrobras Global Finance BV 2% 20/05/2016 400,000 USD 332,073 363,620 1.63

2,033,717 2,165,734 9.71

POLAND Synthos Finance AB 4% 30/09/2021 500,000 EUR 499,200 498,680 2.23

499,200 498,680 2.23

TURKEY Export Credit Bank of Turkey 5.375% 04/11/2016 300,000 USD 282,669 281,906 1.26 Export Credit Bank of Turkey 5.875% 24/04/2019 400,000 USD 372,030 380,895 1.71 Turkiye Garanti Bankasi AS 4% 13/09/2017 400,000 USD 374,097 371,966 1.67 Turkiye Garanti Bankasi AS 4.75% 17/10/2019 EMTN 450,000 USD 412,564 412,686 1.85 Turkiye Halk Bankasi AS 4.875% 19/07/2017 300,000 USD 285,050 281,290 1.26 Turkiye Is Bankasi 3.75% 10/10/2018 500,000 USD 432,540 452,644 2.03 Turkiye Is Bankasi 3.875% 07/11/2017 200,000 USD 179,801 184,432 0.83 Turkiye Is Bankasi 5.1% 01/02/2016 200,000 USD 181,816 184,570 0.83 Turkiye Vakiflar Bankasi TAO 3.75% 15/04/2018 EMTN 200,000 USD 172,134 181,118 0.81 Yapi ve Kredi Bankasi AS 5.25% 03/12/2018 500,000 USD 468,426 468,296 2.10 Yapi ve Kredi Bankasi AS 6.75% 08/02/2017 200,000 USD 189,748 191,100 0.86

3,350,875 3,390,903 15.21


21

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Corporate Bonds Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

UNITED ARAB EMIRATES Glencore Finance Dubai Ltd 1.75% 19/05/2016 EMTN 100,000 EUR 97,485 98,418 0.44

97,485 98,418 0.44


Bond interest accrued 296,742 1.33 Financial assets at fair value through profit or lo ss 19,408,735 20,791,446 93.19 Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets 04-Jan-16 RBC IS Bank Luxembourg EUR 15,373 CZK 415,814 (15) - 04-Jan-16 RBC IS Bank Luxembourg EUR 1,174 CZK 31,760 (1) - 04-Jan-16 RBC IS Bank Luxembourg EUR 61 PLN 260 1 - 04-Jan-16 RBC IS Bank Luxembourg EUR 128 CZK 3,462 - - 04-Jan-16 RBC IS Bank Luxembourg EUR 11 CZK 307 - - 05-Jan-16 RBC IS Bank Luxembourg EUR 57,131 CZK 1,544,928 (41) - 05-Jan-16 RBC IS Bank Luxembourg EUR 1,309 CZK 35,393 (1) - 05-Jan-16 RBC IS Bank Luxembourg EUR 715 PLN 3,037 7 - 05-Jan-16 RBC IS Bank Luxembourg CZK 40,556 EUR 1,502 (1) - 05-Jan-16 RBC IS Bank Luxembourg EUR - CZK 9 - - 05-Jan-16 RBC IS Bank Luxembourg EUR 3 CZK 74 - - 05-Jan-16 RBC IS Bank Luxembourg EUR 5 CZK 147 - - 18-Jan-16 RBC IS Bank Luxembourg EUR 555,165 CZK 15,000,000 153 - 19-Jan-16 RBC IS Bank Luxembourg EUR 17,776,863 USD 19,000,000 294,219 1.32 19-Jan-16 RBC IS Bank Luxembourg USD 213,793 EUR 200,000 (3,279) (0.02) 19-Jan-16 RBC IS Bank Luxembourg EUR 276,332 USD 300,000 289 - 29-Jan-16 RBC IS Bank Luxembourg PLN 11,007,093 EUR 2,591,939 (29,766) (0.13) 29-Jan-16 RBC IS Bank Luxembourg PLN 79,453 EUR 18,710 (215) - 29-Jan-16 RBC IS Bank Luxembourg CZK 315,512,683 EUR 11,702,580 (29,525) (0.13) 29-Jan-16 RBC IS Bank Luxembourg CZK 28,210,875 EUR 1,046,361 (2,640) (0.01)

Net profit on open forward foreign exchange contrac ts 229,185 1.03 Net financial derivative instruments 229,185 1.03 Cash and other net assets 1,289,995 5.78



22

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Global Brands Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve long term capital appreciation through investment in a diversified portfolio of transferable securities. The Fund invests mainly in stocks of strong, world-renowned companies.

The main principles of the investment policy are:

1/ The weight rebalancing of each stock in the portfolio (equal weight approach) which induces a higher, risk-weighted yield in comparison with indices weighted by market value (the firm's size);

2/ Active portfolio management depending on fundamental analysis (the stability of financial ratios in time), horizontal analysis (the comparison within the scope of sector) and quantitative analysis (the analysis of statistical parameters alpha, beta and correlation);

3/ Risk currency hedging.

The Fund achieves its objective by investing primarily in the equity securities of companies which have in the opinion of the Investment Manager a significant position in the market, a comparative advantage over their competition and a strong global brand (a brand that is recognized in many countries worldwide). The Fund invests in securities of companies which operate anywhere in the world provided that the securities held by the Fund are primarily listed or traded on a Recognized Exchange (excluding the Russian markets). In seeking to achieve the objective and in accordance with the investment restrictions and policy, the parameters and diversification of stock or portfolio composition are flexibly adjusted by the Investment Manager according to market developments in order to profit from the current development of individual markets. In seeking to achieve its investment objective, the Investment Manager considers the significance of a company’s position in the market, comparative advantages over competitors, strong global brand and positive conclusions of vertical fundamental analysis (stability of financial indicators in time) and horizontal fundamental analysis (comparison with the sector) of particular stocks and quantitative analysis. On average the portfolio consists of 50 companies that manage the strongest global brands according to the chart of the Interbrand Corporation updated on a yearly basis.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and currency swaps) and are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and it is not intended to declare dividends.

Over the first half of the year the US equity markets, which represent the main part of the Fund’s equity exposure, recorded a 1% gain after moving in a tight range, as negative factors (weak GDP and earnings growth) were offset by corporate equity buybacks and extension of zero-interest-rate-policy. European equity markets rebounded strongly during the first quarter of 2015 in expectation of the ECB quantitative easing programme and earnings recovery supported by an economic recovery. Emerging markets underperformed developed markets, as commodity prices remained weak along with a slowdown in the Chinese economy and as a number of emerging economies faced country-specific fiscal and/or monetary problems. In the late summer, global equity markets experienced a double digit double-bottom correction, triggered firstly by Chinese Yuan devaluation and secondly by the Fed’s worries over the global economy, as Fed chair, Yellen, indicated that global developments overshadowed signs of strength in the United States. Market sentiment on equity markets significantly improved in October, mainly thanks to central bank (ECB, FED, PBoC) actions so equities managed to erase most of the recent losses. The US earnings season also contributed positively, as many companies (mainly from the IT and healthcare sectors) surprised positively.


23

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Global Brands Fund (continued)

The Investment objective of the Fund How the Fund achieves its investment objective (con tinued)

Global equity markets were further supported by the ECB, as Draghi said that lowering of deposit rates was discussed and the Council indicated that it may consider adding monetary stimulus at its December meeting. In December, market volatility started to rise along with investors’ nervousness regarding the Fed’s outlook for the pace of interest rate hikes in 2016. EU markets also reacted sharply negatively to the ECB’s decision that disappointed, as the market was apparently hoping for bolder action (expansion of monthly asset purchases). The market reaction to the first interest rate hike in the US in almost 10 years was rather positive, as the FOMC expects only gradual increases in the Fed funds rate and the statement emphasized the conditional nature of the outlook, despite the fact that the indicated path remains above current market expectations, which consist of only around two rate hikes in 2016. US equity markets as represented by the S&P 500 indexes, finished the year with a 4% gain, while the STOXX Europe 50 Indexes managed to deliver a 11% gain, despite some losses incurred in the second half of the year. Emerging markets represented by the broad-based MSCI Emerging Markets indexes lost 14% driven down by the negative developments in commodity-exporting economies, weak commodity prices and local currencies devaluation.

The Fund profited from exposure to developed markets and finished the year with more than a 7% gain. The Fund had kept a tactically neutral position until autumn, when we adopted a slight underweight position in equities. As regards to individual stock exposures, we are basically overweight in stocks whose brand value we expected to grow at an above-average pace and which we thought were priced at a relatively low valuations (based on P/E, P/CF etc.) in comparison to sector peers. GENERALI CEE GLOBAL BRANDS A EUR

Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 14.13 17,943,287.05 17,943,287.05 31/12/2014 14.81 17,224,620.59 17,224,620.59 31/01/2015 14.59 8,360,864.74 8,360,864.74 28/02/2015 15.43 8,847,647.52 8,847,647.52 31/03/2015 15.44 8,881,251.46 8,881,251.46 30/04/2015 15.54 8,918,703.56 8,956,293.05 31/05/2015 15.59 9,002,994.03 9,007,695.59 30/06/2015 15.10 8,734,995.88 8,734,995.88 31/07/2015 15.52 8,493,886.15 8,493,886.15 31/08/2015 14.52 7,956,076.24 7,956,076.24 30/09/2015 14.16 7,756,660.69 7,756,660.69 31/10/2015 15.59 8,527,635.95 8,527,635.95 30/11/2015 15.78 8,666,034.69 8,616,674.83 31/12/2015 15.37 8,386,073.86 8,386,073.86

GENERALI CEE GLOBAL BRANDS A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 57.63 323,196.69 77,730.92 31/12/2014 61.42 947,831.10 220,523.79 31/01/2015 60.51 1,077,494.29 257,328.66 28/02/2015 64.04 1,179,698.51 284,245.66 31/03/2015 64.09 4,308,441.65 1,058,047.31 30/04/2015 64.59 4,756,131.00 1,180,313.22 31/05/2015 64.85 4,510,217.47 1,093,651.42 30/06/2015 62.90 4,489,334.06 1,071,339.88 31/07/2015 64.68 4,669,193.33 1,125,381.80 31/08/2015 60.58 4,530,130.67 1,071,649.83 30/09/2015 59.08 4,450,529.15 1,048,514.82 31/10/2015 65.11 5,021,938.63 1,180,165.88 30/11/2015 66.03 5,139,504.50 1,198,083.06 31/12/2015 64.35 5,035,204.87 1,173,778.02


24

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Global Brands Fund (continued) GENERALI CEE GLOBAL BRANDS A CZK

Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 - - - 31/12/2014 298.22 41,142.53 1,484.47 31/01/2015 294.30 45,407.06 1,636.98 28/02/2015 311.71 96,496.37 3,510.57 31/03/2015 311.94 112,701.52 4,089.89 30/04/2015 314.61 123,950.72 4,537.36 31/05/2015 316.01 127,935.48 4,670.09 30/06/2015 306.40 129,732.31 4,759.18 31/07/2015 313.34 203,039.61 7,497.13 31/08/2015 292.85 206,606.49 7,640.66 30/09/2015 285.07 262,897.85 9,674.17 31/10/2015 313.76 284,271.12 10,491.77 30/11/2015 317.49 485,300.02 17,843.32 31/12/2015 308.59 454,677.12 16,826.36

The future market outlook for the Fund Looking ahead, we anticipate 2016 to be characterized by a mediocre, albeit resilient economic recovery in EU, driven by the ECB's QE, low commodity prices and the weak euro. The US economy is starting to look fragile, due to the accelerated deterioration in the manufacturing sector (driven down by the fall in oil prices, somewhat weaker export demand from emerging markets (EM) and the strong USD) and more recently also due to weakening in some service sectors. Economic outlook for commodity importing emerging economies is more mixed. While Asian economies are negatively influenced by an ongoing slowdown in China, the CEE region profits from EMU economic recovery. On the other hand, commodity-exporting emerging economies are set to contract further, given the broad-based commodity oversupply, contributing to depreciation in local currencies, an increase in inflation and hence restrictive monetary policies in many cases. Low energy prices and a still negative output gap will continue to keep underlying inflation low in developed economies.

Regarding central bank policies, we expect ongoing strong support from major central banks, including the ECB, the Bank of Japan and the People’s Bank of China. In the case of the Fed, given the accelerated deterioration in the US economy, the recently announced gradual normalization of monetary policy is increasingly uncertain.

There are a number of risks. Apart from uncertain global economic developments (mainly in the US and China), the major risk relates to the Fed. While it will likely proceed extremely carefully in normalizing its key rate, there is a clear risk that markets will overreact. In this case, US bonds and EM assets seem prone to suffer most. There is also increased/ high risk that the European integration will face more severe setbacks, given the UK’s forthcoming referendum on EU membership, political uncertainty in the periphery and ongoing migrant issue risks eroding political cohesion over the medium term.

We see upside potential for equities in the euro area, underpinned by higher earnings, a weaker euro, decent valuations and dividend yield of around 3%. For the US, however, the equity cycle appears more mature, with already decreasing earnings and the normalization of monetary policy creating some headwinds to valuations. We continue to be cautious on the EM but at some time in 2016 there could be opportunities to buy as we think they are experiencing their hardest capitulation phase.


25

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Global Brands Fund Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets Listed securities : equities BELGIUM Anheuser-Busch InBev SA 1,500 EUR 60,145 171,600 1.79

60,145 171,600 1.79

FRANCE AXA SA 8,800 EUR 176,932 222,024 2.32Danone SA 2,652 EUR 127,967 165,167 1.72Kering 900 EUR 104,039 142,155 1.48LVMH Moet Hennessy Louis Vuitton SE 1,350 EUR 167,576 195,615 2.04

576,514 724,961 7.56

GERMANY Allianz SE 1,100 EUR 150,450 179,905 1.88Bayerische Motoren Werke AG 2,150 EUR 135,418 209,905 2.19Daimler AG 2,600 EUR 113,434 201,708 2.11SAP SE 2,900 EUR 145,037 212,802 2.22Siemens AG 2,100 EUR 169,459 188,748 1.97Volkswagen AG 1,500 EUR 218,203 200,625 2.10

932,001 1,193,693 12.47

GREAT BRITAIN HSBC Holdings PLC 4,552 USD 148,349 165,394 1.73

148,349 165,394 1.73

IRELAND Accenture PLC 2,500 USD 120,118 240,495 2.51

120,118 240,495 2.51

JAPAN Canon Inc 6,300 USD 184,991 174,739 1.82Honda Motor Co Ltd 6,300 USD 152,951 185,178 1.93Sony Corp 7,000 USD 154,509 158,584 1.66Toyota Motor Corp 1,950 USD 135,719 220,867 2.31

628,170 739,368 7.72

NETHERLANDS Koninklijke Philips NV 8,000 EUR 160,531 188,480 1.97

160,531 188,480 1.97

SOUTH KOREA Samsung Electronics Co Ltd 400 USD 172,952 195,710 2.04

172,952 195,710 2.04


26

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Global Brands Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets SPAIN Industria de Diseno Textil SA 6,000 EUR 138,114 190,140 1.99

138,114 190,140 1.99

SWITZERLAND Nestle SA 3,000 EUR 150,845 208,980 2.18

150,845 208,980 2.18

UNITED STATES OF AMERICA Alphabet Inc 300 USD 99,501 214,861 2.24Amazon.com Inc 360 USD 65,266 223,990 2.34American Express Co 1,700 USD 73,572 108,842 1.14Apple Inc 1,850 USD 96,812 179,261 1.87Cisco Systems Inc 8,600 USD 163,099 214,980 2.25Citigroup Inc 3,000 USD 86,401 142,916 1.49Coca-Cola Co 5,000 USD 145,309 197,735 2.06Colgate-Palmolive Co 2,500 USD 82,366 153,319 1.60eBay Inc 7,000 USD 120,234 177,078 1.85Facebook Inc 1,950 USD 73,347 187,874 1.96Ford Motor Co 14,800 USD 137,286 191,965 2.01General Electric Co 7,400 USD 99,713 212,198 2.22Goldman Sachs Group Inc 1,200 USD 135,426 199,094 2.08HP Inc 12,200 USD 135,528 132,972 1.39Intel Corp 6,800 USD 145,581 215,649 2.25International Business Machines Corp 1,000 USD 124,248 126,687 1.32JPMorgan Chase & Co 3,300 USD 120,230 200,588 2.09Kellogg Co 2,900 USD 115,448 192,933 2.01McDonald's Corp 1,400 USD 88,861 152,256 1.59Microsoft Corp 4,100 USD 111,515 209,397 2.19NIKE Inc 3,000 USD 55,429 172,604 1.80Oracle Corp 5,000 USD 122,336 168,140 1.76PayPal Holdings Inc 3,300 USD 52,097 109,970 1.15PepsiCo Inc 1,900 USD 103,463 174,766 1.82Procter & Gamble Co 2,513 USD 140,208 183,704 1.92United Parcel Service Inc 2,050 USD 127,493 181,599 1.90Walt Disney Co 1,800 USD 54,501 174,118 1.82

2,875,270 4,799,496 50.12

Total listed securities : equities 5,963,009 8,818,317 92.08

Listed securities : bonds IRELAND VEB-Leasing OAO via VEB Leasing Invest Ltd 5.125% 27/05/2016 200,000 USD 184,373 183,719 1.92

184,373 183,719 1.92

Total listed securities : bonds 184,373 183,719 1.92

Bond interest accrued 865 0.01 Financial assets at fair value through profit or lo ss 6,147,382 9,002,901 94.01


27

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Global Brands Fund (continued) Fair Value % of NetDescription EUR Assets Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets04-Jan-16 RBC IS Bank Luxembourg EUR 116 PLN 494 1 -05-Jan-16 RBC IS Bank Luxembourg PLN 6 EUR 1 - -05-Jan-16 RBC IS Bank Luxembourg EUR 18 CZK 480 - -05-Jan-16 RBC IS Bank Luxembourg EUR 763 PLN 3,240 8 -05-Jan-16 RBC IS Bank Luxembourg EUR 52 PLN 220 1 -19-Jan-16 RBC IS Bank Luxembourg EUR 6,549,371 USD 7,000,000 108,396 1.1329-Jan-16 RBC IS Bank Luxembourg CZK 460,241 EUR 17,071 (43) -29-Jan-16 RBC IS Bank Luxembourg PLN 4,985,112 EUR 1,173,889 (13,481) (0.14)29-Jan-16 RBC IS Bank Luxembourg PLN 123,640 EUR 29,097 (316) -29-Jan-16 RBC IS Bank Luxembourg PLN 3,460 EUR 814 (9) -



Cash and other net assets 479,220 5.00



28

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE New Economies Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve long-term capital appreciation through investments in a diversified portfolio of transferable securities.

The Fund seeks to achieve its objective by investing primarily in the equity securities of companies operating in emerging economies worldwide, in particular the emerging economies in Asia (except Japan), Latin America, South Africa and Central and Eastern Europe. We consider mainly countries included in the MSCI Emerging Markets Indexes as emerging market countries.

The key investment criteria we use are a company’s financial strength, competitiveness, profitability, growth prospects and quality of management. The primary approach is to look for growth at a reasonable price. The allocation is based on fundamental research that seeks out sectors and regions with above-average long-term growth. The Fund has a quality bias.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and currency swaps) and are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and does not intend to declare dividends.

It was a challenging year for emerging market equities, which ended the year lower in US dollar terms. Most emerging market currencies depreciated against the US dollar. At first, markets were relatively resilient, even staging a rally in the first quarter of 2015 on a wave of global monetary easing. But eventually, sentiment was battered by plummeting commodity prices and renewed concerns over China’s economic slowdown. Despite the volatility, stocks in China and Hong Kong were amongst the best performers, due to stimulus efforts.

Brazil led the weakness in Latin America. The real sank to a record low against the US dollar after the country lost its investment-grade credit rating in a surprise downgrade by Standard & Poor’s. Meanwhile, Mexico was supported by a relatively resilient GDP growth driven by domestic consumption.

In emerging Europe, Hungary outperformed its regional counterparts, as its currency held up well against the US dollar and GDP growth outpaced the Eurozone. The country is expected to regain its investment-grade status in 2016. Gains were pared by Russia and Turkey, however weak commodity prices and fiscal austerity driven by declining tax revenues deepened Russia’s recession.

New Economies Fund returned -17.55% in Euro terms in 2015 and slightly underperforming the MSCI Emerging Markets Indexes return of -16.96%. This Fund’s underperformance relative to the benchmark was driven mainly by the underweight to China. Chinese stocks rose sharply in the beginning of the year, in response to a tide of equity account openings, a surge in margin trading activity, and monetary easing. Although weak economic data reversed gains in the second half, the indexes still ended the year among the best-performing markets positive stock selection.


29

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE New Economies Fund (continued) NAV per Share of the Fund during the period

GENERALI CEE NEW ECONOMIES A EUR Date NAV per Share Market Value (EUR) Market Value (EUR)

31/12/2013 9.84 13,919,031.84 13,919,031.84 31/12/2014 10.20 14,937,684.88 14,937,684.88 31/01/2015 10.43 14,541,528.34 14,541,528.34 28/02/2015 10.81 15,082,126.73 15,082,126.73 31/03/2015 10.29 14,362,588.99 14,362,588.99 30/04/2015 11.07 15,401,655.94 15,461,844.23 31/05/2015 10.49 14,916,046.20 14,951,501.00 30/06/2015 10.12 14,434,769.23 14,434,769.23 31/07/2015 9.38 12,774,414.94 12,774,414.94 31/08/2015 8.70 11,863,131.69 11,863,131.69 30/09/2015 8.50 11,603,662.80 11,603,662.80 31/10/2015 8.93 12,191,631.17 12,191,631.17 30/11/2015 8.71 12,014,639.62 11,898,108.93 31/12/2015 8.41 11,486,619.27 11,486,619.27

GENERALI CEE NEW ECONOMIES A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 42.04 179,378.40 43,141.68 31/12/2014 44.31 434,893.12 101,182.88 31/01/2015 45.31 530,813.60 126,769.63 28/02/2015 47.02 640,844.22 154,409.95 31/03/2015 44.79 4,926,595.29 1,209,850.64 30/04/2015 48.21 6,053,848.62 1,501,815.69 31/05/2015 45.70 5,766,606.94 1,400,712.56 30/06/2015 44.12 5,835,338.43 1,392,551.92 31/07/2015 40.87 5,462,470.78 1,316,579.71 31/08/2015 37.96 5,166,491.65 1,222,187.68 30/09/2015 37.10 5,096,538.24 1,200,710.23 31/10/2015 39.02 5,440,296.21 1,278,480.77 30/11/2015 38.14 5,399,605.28 1,251,832.10 31/12/2015 36.81 5,231,292.24 1,219,488.78


The US Federal Reserve moved to finally raise interest rates, while emphasizing that any future adjustments will be gradual. This is better news than was expected several months ago and will have the biggest impact on the countries that have borrowed heavily in US dollars, including Brazil, Russia and Turkey, as their debt burdens would increase in local currency terms.

Another driver of sentiment is likely to be the slowdown in China, as it restructures an export and investment-led economy towards a more sustainable model with consumption and services as its main growth pillars. While this is a good thing in the longer term, the knock-on impact on commodity prices may spell trouble for emerging market exporters. With major oil players continuing to ramp up production, short-term prospects for the energy sector appear challenging.

We also expect corporate earnings to improve modestly in 2016. Many companies are working to maintain or grow margins, which should position them for an earnings recovery.


30

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE New Economies Fund Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets Listed securities : equities AUSTRIA Erste Group Bank AG 14,062 EUR 273,747 406,532 3.20 Raiffeisen Bank International AG 3,000 EUR 101,970 40,815 0.32

375,717 447,347 3.52

BRAZIL Ambev SA 78,932 USD 367,417 324,069 2.55 Banco Bradesco SA 26,924 USD 251,631 119,216 0.94 Cia Brasileira de Distribuicao 6,150 USD 161,924 59,558 0.47 Cia de Saneamento Basico do Estado de Sao Paulo 42,300 USD 273,761 179,122 1.41 Cia Energetica de Minas Gerais 42,235 USD 250,104 58,320 0.46 Itau Unibanco Holding SA 35,456 USD 339,516 212,481 1.67 Petroleo Brasileiro SA 10,800 USD 231,190 42,751 0.34 Vale SA 20,500 USD 356,946 62,087 0.49

2,232,489 1,057,604 8.33

CHILE Enersis SA 8,000 USD 117,877 89,478 0.70

117,877 89,478 0.70

CHINA China Life Insurance Co Ltd 29,400 USD 322,766 432,759 3.41 China Petroleum & Chemical Corp 2,550 USD 141,016 140,798 1.11 Guangshen Railway Co Ltd 4,000 USD 53,502 91,025 0.72 Huaneng Power International Inc 13,500 USD 214,605 426,263 3.35 PetroChina Co Ltd 3,570 USD 316,964 215,554 1.70 Sinopec Shanghai Petrochemical Co Ltd 12,200 USD 228,298 444,626 3.50

1,277,151 1,751,025 13.79

CZECH REPUBLIC CEZ AS 11,300 CZK 306,606 185,798 1.46 Komercni banka as 2,700 CZK 394,505 494,602 3.89

701,111 680,400 5.35

FEDERATION OF RUSSIA Sberbank of Russia PJSC 9,000 USD 61,370 47,970 0.38 Severstal PAO 4,000 USD 25,434 30,967 0.24

86,804 78,937 0.62

GREAT BRITAIN Evraz PLC 17,659 GBP 112,010 17,551 0.14

112,010 17,551 0.14


31

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE New Economies Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

HONG KONG China Mobile Ltd 8,100 USD 303,172 420,024 3.30 Lenovo Group Ltd 229,714 EUR 208,353 214,735 1.69

511,525 634,759 4.99

INDIA HDFC Bank Ltd 12,240 USD 294,444 694,084 5.46 ICICI Bank Ltd 56,000 USD 302,891 403,645 3.18 Infosys Ltd 25,500 USD 240,165 393,192 3.09 Tata Motors Ltd 16,400 USD 277,058 444,912 3.50

1,114,558 1,935,833 15.23

INDONESIA Telekomunikasi Indonesia Persero Tbk PT 6,200 USD 152,029 253,411 1.99

152,029 253,411 1.99

MEXICO America Movil SAB de CV 9,500 USD 170,962 122,959 0.97 Cemex SAB de CV 39,567 USD 174,849 202,880 1.60

345,811 325,839 2.57

NETHERLANDS X5 Retail Group NV 5,000 USD 80,212 87,223 0.69

80,212 87,223 0.69

PERU Cia de Minas Buenaventura SAA 10,400 USD 232,659 40,976 0.32

232,659 40,976 0.32

SOUTH AFRICA Gold Fields Ltd 23,000 USD 133,446 58,649 0.46 Sasol Ltd 7,700 USD 252,928 190,108 1.50

386,374 248,757 1.96

SOUTH KOREA Hyundai Motor Co 9,000 EUR 180,787 358,353 2.82 KB Financial Group Inc 13,500 USD 379,663 346,355 2.72 Korea Electric Power Corp 9,000 USD 162,066 175,394 1.38 KT Corp 18,500 USD 229,052 202,831 1.60 LG Display Co Ltd 52,000 USD 423,577 499,751 3.93 POSCO 5,880 USD 404,750 191,399 1.51 Samsung Electronics Co Ltd 1,010 USD 298,200 494,169 3.89 SK Telecom Co Ltd 19,300 USD 266,226 358,000 2.82

2,344,321 2,626,252 20.67


32

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE New Economies Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

TAIWAN AU Optronics Corp 56,600 USD 206,642 151,621 1.19 Siliconware Precision Industries Co Ltd 73,000 USD 300,893 520,804 4.10 Taiwan Semiconductor Manufacturing Co Ltd 31,600 USD 279,771 661,788 5.21 United Microelectronics Corp 116,000 USD 190,298 200,755 1.58

977,604 1,534,968 12.08

UNITED STATES OF AMERICA Southern Copper Corp 6,479 USD 159,216 155,787 1.22

159,216 155,787 1.22


Listed securities : exchange traded funds FRANCE Lyxor ETF Eastern Europe CECE EUR 3,000 EUR 58,340 47,880 0.38 Lyxor ETF Turkey EURO 4,000 EUR 164,765 157,200 1.24

223,105 205,080 1.62

Total listed securities : exchange traded funds 223,105 205,080 1.62

Financial assets at fair value through profit or lo ss 11,430,573 12,171,227 95.79 Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets 04-Jan-16 RBC IS Bank Luxembourg EUR 145 PLN 614 2 - 05-Jan-16 RBC IS Bank Luxembourg EUR 575 PLN 2,444 6 - 05-Jan-16 RBC IS Bank Luxembourg EUR 73 PLN 308 1 - 05-Jan-16 RBC IS Bank Luxembourg EUR 1 PLN 5 - - 15-Jan-16 RBC IS Bank Luxembourg EUR 703,157 CZK 19,000,000 121 - 15-Jan-16 RBC IS Bank Luxembourg EUR 10,234,171 USD 10,950,000 157,719 1.24 15-Jan-16 RBC IS Bank Luxembourg CZK 900,000 EUR 33,379 (77) - 15-Jan-16 RBC IS Bank Luxembourg CZK 400,000 EUR 14,843 (43) - 29-Jan-16 RBC IS Bank Luxembourg PLN 5,273,392 EUR 1,241,773 (14,261) (0.11) Net profit on open forward foreign exchange contrac ts 143,468 1.13


Cash and other net assets 391,413 3.08 Total net assets attributable to holders of redeema ble participating shares 12,706,108 100.00


33

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Oil Industry & Energy Production Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve long-term capital appreciation through investment in a diversified portfolio of transferable securities.

The Fund invests primarily in a diversified portfolio of shares and/or transferable securities issued by companies active in the oil and energy sector. This includes companies mainly involved in the following industries: oil & gas (exploration, production, marketing, refining and/or transportation of oil and gas products); energy equipment & services (construction or provision of oil rigs, drilling equipment and other energy related service and equipment) and electric-integrated industry (generates, distributes and trades electricity to municipal, industrial and residential customers).

The Fund’s regional focus is primarily in North America and Western Europe. An additional part of the portfolio is made up of transferable securities issued in emerging market countries. All these securities are listed and traded on Recognized Exchanges.

In seeking to achieve its investment objective, the Fund uses supplementary criteria such as: the strength of position in the market, comparative advantages over competitors and positive conclusions of vertical fundamental analysis (stability of financial indicators in time) and horizontal fundamental analysis (comparison with the sector) of particular stocks. The Fund has a quality bias.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and currency swaps) and are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and it does not intend to declare dividends.

The Oil and Energy sector lagged behind World markets as crude oil prices fell around 30 percent in 2015. The imbalance in global supply and demand has led oil prices to slump to levels last seen over 10 years ago.

Weak energy prices have pressured oil and energy companies, and while refining segments have outperformed, upstream units have struggled, with stressed results mitigated by cost reductions and modest efficiency gains. Sluggish production growth and concerns about capital repatriation continue to repress the broader group.

The Energy sector had its roughest year since the financial crisis era seven years ago, and ended the year as the S&P’s worst-performing sector. The two broadest energy subsector indices, Exploration & Production and Oil Services, both posted losses of 37%, as oil prices continued to decline all the way to the mid-$40s.

The Fund’s decline of 17.5 % was significantly smaller than that of the broad S&P 500 Energy index given our overweighting in the Oil & Refining Sector which posted double digit gains as low oil prices supported this subsector in 2015.


34

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Oil Industry & Energy Production Fund (continued) NAV per Share of the Fund during the period

GENERALI CEE OIL IND. AND ENERGY A EUR Date NAV per Share Market Value (EUR) Market Value (EUR)

31/12/2013 10.44 10,315,515.26 10,315,515.26 31/12/2014 9.88 9,510,358.87 9,510,358.87 31/01/2015 9.79 8,766,813.98 8,766,813.98 28/02/2015 10.18 9,134,376.56 9,134,376.56 31/03/2015 9.88 8,887,732.33 8,887,732.33 30/04/2015 10.39 9,239,974.67 9,347,076.36 31/05/2015 9.97 8,993,192.14 8,984,763.48 30/06/2015 9.56 8,629,813.11 8,629,813.11 31/07/2015 9.24 7,879,273.14 7,879,273.14 31/08/2015 8.60 7,362,054.79 7,362,054.79 30/09/2015 7.98 6,870,522.28 6,870,522.28 31/10/2015 8.77 7,233,727.47 7,233,727.47 30/11/2015 8.88 7,370,203.88 7,309,200.20 31/12/2015 8.19 6,731,106.40 6,731,106.40

GENERALI CEE OIL IND. AND ENERGY A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 47.52 150,695.11 36,243.16 31/12/2014 45.73 312,284.99 72,656.69 31/01/2015 45.35 371,253.88 88,663.36 28/02/2015 47.19 496,376.44 119,600.77 31/03/2015 45.81 608,667.91 149,473.87 30/04/2015 48.25 715,375.52 178,423.33 31/05/2015 46.36 799,658.61 191,850.43 30/06/2015 44.46 851,585.84 203,223.43 31/07/2015 43.02 857,382.15 206,648.60 31/08/2015 40.03 870,777.40 205,991.51 30/09/2015 37.18 838,813.39 197,618.81 31/10/2015 40.89 1,010,878.11 237,558.43 30/11/2015 41.47 1,060,400.84 245,989.37 31/12/2015 38.26 1,016,949.66 237,065.46


Energy looks like the sector with the greatest potential for price appreciation in 2016, although risks remain in the mid-term.

With oil priced at $35/ barrel, it is more likely than ever that US production will fall sharply in 2016, and that production will start to decline in many other regions too. Assuming global demand continues to grow at a modest rate, it is logical to forecast a solid price recovery as the year progresses.

The problem for oil remains in the short-term. The recent disastrous OPEC meeting, which confirmed a production “free-for-all” (no quotas or overall target), gives rise to the possibility of higher OPEC output in Q1 2016. We project a balanced market by the end of 2016, offering gains of 10-30% on a 12-month outlook. EU gas prices could also benefit from renewed Russia-Ukraine tensions.


35

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Oil Industry & Energy Production Fund Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets Listed securities : equities AUSTRIA OMV AG 7,100 EUR 192,376 185,523 2.66 Verbund AG 3,100 EUR 71,148 36,766 0.53

263,524 222,289 3.19

BRAZIL Cia Energetica de Minas Gerais 14,534 USD 90,234 20,069 0.29 Petroleo Brasileiro SA 4,500 USD 98,990 17,813 0.26

189,224 37,882 0.55

CHINA China Petroleum & Chemical Corp 400 USD 32,178 22,086 0.32 PetroChina Co Ltd 1,260 USD 115,842 76,078 1.09

148,020 98,164 1.41

CURACAO Schlumberger Ltd 3,100 USD 154,820 199,047 2.86

154,820 199,047 2.86

CZECH REPUBLIC CEZ AS 10,700 CZK 302,971 175,933 2.53

302,971 175,933 2.53

FINLAND Neste Oil OYJ 11,000 EUR 99,358 303,930 4.36

99,358 303,930 4.36

FRANCE Electricite de France SA 10,400 EUR 248,504 141,180 2.03 Engie SA 18,127 EUR 384,209 295,923 4.25 Technip SA 1,038 EUR 57,909 47,473 0.68 TOTAL SA 8,461 EUR 317,503 349,144 5.01

1,008,125 833,720 11.97

GERMANY E.ON SE 17,339 EUR 285,532 154,855 2.22 RWE AG 12,000 EUR 310,841 140,520 2.02

596,373 295,375 4.24

GREAT BRITAIN Noble Corp plc 6,000 USD 127,322 58,271 0.84 Rowan Cos Plc 2,200 USD 47,582 34,328 0.49 Royal Dutch Shell PLC 7,878 EUR 164,058 166,186 2.38

338,962 258,785 3.71


36

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Oil Industry & Energy Production Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

ITALY Enel SpA 23,000 EUR 76,536 89,516 1.28 Eni SpA 8,100 EUR 127,812 111,780 1.60 Saipem SpA 2,000 EUR 34,566 14,980 0.21

238,914 216,276 3.09

SPAIN Gas Natural SDG SA 5,767 EUR 82,631 108,506 1.56 Iberdrola SA 15,984 EUR 77,805 104,695 1.50 Repsol SA 11,740 EUR 91,800 62,098 0.89

252,236 275,299 3.95

UNITED STATES OF AMERICA Anadarko Petroleum Corp 930 USD 44,375 41,590 0.60 Apache Corp 3,750 USD 254,368 153,514 2.20 Chevron Corp 4,350 USD 305,808 360,238 5.17 ConocoPhillips 3,550 USD 130,136 152,582 2.19 Devon Energy Corp 3,050 USD 140,313 89,846 1.29 Dominion Resources Inc/VA 1,300 USD 34,938 80,946 1.16 Duke Energy Corp 4,832 USD 195,418 317,552 4.56 Energy Transfer Partners LP 2,000 USD 81,827 62,101 0.89 EOG Resources Inc 3,660 USD 121,669 238,508 3.42 Exelon Corp 6,600 USD 199,025 168,721 2.42 Exxon Mobil Corp 4,200 USD 217,459 301,381 4.33 Halliburton Co 8,600 USD 208,758 269,487 3.87 Hess Corp 5,900 USD 255,050 263,308 3.78 Kinder Morgan Inc/DE 2,093 USD - 28,747 0.41 Marathon Oil Corp 8,900 USD 165,713 103,149 1.48 Marathon Petroleum Corp 6,850 USD 93,759 326,893 4.69 Occidental Petroleum Corp 2,900 USD 166,094 180,493 2.59 Phillips 66 1,275 USD 31,919 96,009 1.38 Southern Co 2,800 USD 74,972 120,604 1.73 Spectra Energy Corp 6,200 USD 116,297 136,636 1.96 Valero Energy Corp 5,550 USD 84,526 361,264 5.18

2,922,424 3,853,569 55.30


Financial assets at fair value through profit or lo ss 6,514,951 6,770,269 97.16


37

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Oil Industry & Energy Production Fund (continued) Fair Value % of Net Description EUR Assets

Financial Derivative Instruments Open Forward Foreign Currency Contracts Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets 04-Jan-16 RBC IS Bank Luxembourg EUR 107 PLN 452 1 - 05-Jan-16 RBC IS Bank Luxembourg EUR 388 PLN 1,646 4 - 05-Jan-16 RBC IS Bank Luxembourg EUR 52 PLN 220 1 - 05-Jan-16 RBC IS Bank Luxembourg PLN 8 EUR 2 - - 15-Jan-16 RBC IS Bank Luxembourg EUR 185,041 CZK 5,000,000 32 - 15-Jan-16 RBC IS Bank Luxembourg EUR 4,719,869 USD 5,050,000 72,738 1.04 15-Jan-16 RBC IS Bank Luxembourg USD 200,000 EUR 183,687 358 0.01 15-Jan-16 RBC IS Bank Luxembourg CZK 400,000 EUR 14,835 (34) - 15-Jan-16 RBC IS Bank Luxembourg CZK 150,000 EUR 5,566 (16) - 15-Jan-16 RBC IS Bank Luxembourg USD 200,000 EUR 184,027 19 - 29-Jan-16 RBC IS Bank Luxembourg PLN 993,651 EUR 233,984 (2,687) (0.04) 29-Jan-16 RBC IS Bank Luxembourg PLN 31,710 EUR 7,462 (81) - 29-Jan-16 RBC IS Bank Luxembourg PLN 1,866 EUR 439 (5) -






38

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Commodity Fund

The Investment objective of the Fund How the Fund achieves its investment objective

The aim of the Fund is to achieve long term capital appreciation of assets and it is intended for all investors who want to increase the diversification of their portfolios of equity and bond funds with another asset class such as commodities which are otherwise more difficult to access for ordinary investors. The Fund invests primarily in active, agricultural and industrial commodities without trading futures or taking physical delivery of assets.

The Fund achieves its objective by investing primarily in exchange traded funds (also in open-ended collective investment schemes with a similar investment policy to the Fund), debt securities such as exchange traded commodities (exchange traded notes in general) and index certificates which gain exposure to the commodity indices, worldwide listed or traded on a Recognised Exchange (excluding any Russian markets). The Fund follows a so-called “Core Satellite” strategy. The Fund is solely invested in commodities and has absolutely no involvement in mining companies or other companies.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and swaps) and they are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and does not intend to declare dividends.

Following the negative trend of 2014, commodities entered 2015 on a downbeat note, led down by the ongoing plunge in crude oil prices. However that selling pressure was exhausted soon on the back of the significant price drop, stronger oil demand, less pressure by Saudi Arabia on the discount and rapidly declining US drilling oil rig counts. Although OPEC has continued to hold to its strategy of preserving its market share in Asia despite low prices and production remains high, oil prices rallied heavily in the second half of March and in April as a lot of negative expectations were deeply priced in.

Industrial metals had a very bad start to the year. Facing oversupply and uncertain demand from China due to decelerating growth, prices were dragged down. The pressure intensified heavily in June on the back of the Chinese stock panic sell-off.

The Greek fiscal crisis provided surprisingly little support to precious metals. Gold and silver prices were not able to hold gains and retreated back to the levels at which they started at the beginning of the year as expectations regarding monetary policy tightening in the U.S. and weaker emerging markets currencies prevailed. Moreover, platinum, palladium and rhodium suffered a significant loss as growth of global car production has been slowing, South Africa’s production renewed, base metals performed badly and investors increased their bets on a further decline.

Facing ongoing excess supply, the agricultural sub indices drifted downward for most of the first half of the year and hit a new multi-year low. However, the release of Agriculture Department reports about planting data and deterioration of weather conditions turned the trend and agricultural commodities skyrocketed in June, erasing all year-to-date losses.

The Fund kept its heavily underweight position in crude oil as the shape of crude futures was in a deep contango and downside risks for prices prevailed. From an historical perspective, the Fund remained underweight in gold, silver and partially in base metals in favour of industrial precious metals. The Fund was a net purchaser of agricultural commodities. The total commodity exposure was subject to big changes, oscillating between 80% and 100% based on the short-term outlook. The Fund was USD/EUR long within its FX-hedging limits and profited from the USD appreciation. As a result, despite another sharp decline of NAV per share in 2015, the Fund out-performed broad commodity indices as such.


39

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Commodity Fund (continued)

GENERALI CEE COMMODITY A EUR Date NAV per Share Market Value (EUR) Market Value (EUR)

31/12/2013 8.73 7,102,053.76 7,102,053.76 31/12/2014 7.24 5,980,994.43 5,980,994.43 31/01/2015 6.82 5,455,193.14 5,455,193.14 28/02/2015 7.03 5,637,107.23 5,637,107.23 31/03/2015 6.79 5,456,324.28 5,456,324.28 30/04/2015 7.01 5,684,976.09 5,641,911.87 31/05/2015 6.83 5,535,533.19 5,518,043.08 30/06/2015 6.75 5,468,792.70 5,468,792.70 31/07/2015 6.21 4,901,289.78 4,901,289.78 31/08/2015 5.98 4,730,365.35 4,730,365.35 30/09/2015 5.97 4,749,923.26 4,749,923.26 31/10/2015 6.04 4,697,823.89 4,697,823.89 30/11/2015 5.57 4,362,236.67 4,371,347.44 31/12/2015 5.40 4,240,335.58 4,240,335.58

GENERALI CEE COMMODITY A PLN Date NAV per Share Market Value (PLN) Market Value (EUR)

31/12/2013 34.64 777,920.78 187,095.04 31/12/2014 29.18 399,394.68 92,923.76 31/01/2015 27.51 960,235.72 229,324.81 28/02/2015 28.39 11,755,045.87 2,832,351.44 31/03/2015 27.45 5,057,589.71 1,242,019.65 30/04/2015 28.31 10,376,512.86 2,545,823.57 31/05/2015 27.63 10,506,045.49 2,542,065.94 30/06/2015 27.32 12,446,050.64 2,970,139.94 31/07/2015 25.10 5,949,026.27 1,433,850.65 31/08/2015 24.18 5,660,128.44 1,338,962.63 30/09/2015 24.15 5,671,295.78 1,336,119.25 31/10/2015 24.47 6,531,617.06 1,534,943.41 30/11/2015 22.59 5,789,265.84 1,357,405.78 31/12/2015 21.88 5,702,405.00 1,329,311.88

GENERALI CEE COMMODITY A CZK Date NAV per Share Market Value (CZK) Market Value (EUR)

31/12/2013 31/12/2014 139.41 34,198,740.68 1,233,930.02 31/01/2015 131.48 32,440,828.81 1,169,531.47 28/02/2015 135.51 33,688,158.42 1,225,586.42 31/03/2015 130.62 33,651,503.04 1,221,198.62 30/04/2015 134.95 35,700,892.64 1,291,694.21 31/05/2015 131.56 34,909,541.19 1,269,809.87 30/06/2015 129.75 34,439,766.00 1,263,409.64 31/07/2015 119.43 31,880,345.20 1,177,164.83 31/08/2015 114.92 30,820,403.09 1,139,791.03 30/09/2015 114.41 30,466,553.84 1,121,114.60 31/10/2015 115.69 31,823,307.77 1,174,522.50 30/11/2015 106.82 29,659,296.77 1,097,920.60 31/12/2015 103.22 29,605,785.95 1,095,629.38


For a lot of commodities, the momentum of supply side development will remain a key factor, but compared to previous years, the year 2016 should be much more balanced. Supported by cheaper energy and the quantitative easing programme in Europe, a gradual recovery of the global economy remains the base scenario, although Fed pace of monetary policy tightening in the U.S. and China hard- or soft-landing are challenges for commodity markets, especially for gold. Still, we are facing a crude oil surplus as OPEC will continue to produce more than is needed, some major downside risk factors remain in play for crude and the volatility is going to stay high. On the other hand, base metals and industrial precious metals particularly seem to be oversold and some recovery is likely once fundamentals regain influence and concern over Chinese demand eases. From the long-term perspective, Emerging Markets infrastructure and population growth are set to drive demand for commodities over the long term.


40

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Commodity Fund

Acquisition cost Fair Value % of Net

Description Quantity Currency EUR EUR Assets Listed securities : warrants GREAT BRITAIN iPath Bloomberg Commodity Indexes Total Return ETN 8,000 USD 226,993 158,115 2.37iPath Bloomberg Industrial Metals Sub indexes Total Return ETN 750 USD 23,196 13,187 0.20

250,189 171,302 2.57

IRELAND iShares Physical Palladium ETC 22,000 USD 346,372 273,880 4.11Source Physical Palladium P-ETC 4,000 USD 221,140 197,238 2.96Source Physical Platinum P-ETC 500 USD 57,468 39,236 0.59

624,980 510,354 7.66

JERSEY db Physical Gold ETC 600 USD 60,910 57,642 0.86db Physical Palladium ETC 2,500 USD 168,142 122,618 1.84db Physical Platinum ETC 1,000 USD 104,027 77,934 1.17ETFS Agriculture 6,000 USD 28,475 28,770 0.43ETFS Coffee 45,000 USD 67,201 57,581 0.86ETFS Cotton 55,000 USD 97,795 105,261 1.58ETFS Industrial Metals 20,000 USD 182,304 163,914 2.46ETFS Longer Dated Agriculture 5,900 USD 59,810 49,615 0.75ETFS Nickel 5,000 USD 67,954 41,535 0.62ETFS Physical Palladium 600 USD 27,223 28,882 0.43ETFS Physical PM Basket 2,400 USD 186,544 167,335 2.51ETFS Physical Silver 100 USD 1,575 1,222 0.02ETFS WTI 2mth Oil Securities 14,000 USD 275,839 217,931 3.27

1,327,799 1,120,240 16.80

SWEDEN ELEMENTS Linked to the Rogers International Commodity Indexes - Agri Tot Return 52,000 USD 334,038 299,229 4.49ELEMENTS Linked to the Rogers International Commodity Indexes - Metals Tot Return 30,000 USD 226,099 179,122 2.69ELEMENTS Linked to the Rogers International Commodity Indexes - Total Return 16,000 USD 92,941 68,195 1.02

653,078 546,546 8.20

UNITED STATES OF AMERICA GS Connect S&P GSCI Enhanced Commodity Total Return Strategy Indexes ETN 8,975 USD 295,077 165,901 2.49

295,077 165,901 2.49

Total listed securities : warrants 3,151,123 2,514,343 37.72


41

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Commodity Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets Listed securities : exchange traded funds FRANCE Amundi ETF Commodities S&P Gsci Metals UCITS ETF C 2,000 USD 390,200 324,036 4.86LYXOR ETF Commodities Thomson Reuters/ Jefferies CRB TR 67,500 USD 1,351,140 1,004,763 15.08

1,741,340 1,328,799 19.94

LUXEMBOURG db x-trackers DBLCI - OY Balanced UCITS ETF - 1C EUR Hedged 14,500 EUR 459,630 231,710 3.48db x-trackers DBLCI - OY Balanced UCITS ETF - 2C 36,000 USD 819,194 663,893 9.96S&P GSCI Capped Component 35/20 THEAM Easy UCITS ETF Class A USD Unit 39,000 USD 1,101,931 929,136 13.94

2,380,755 1,824,739 27.38

Total listed securities : exchange traded funds 4,122,095 3,153,538 47.32

Other transferable securities : investment funds LUXEMBOURG RBS Market Access Rogers International Commodity Indexes Agriculture Indexes UCITS ETF 4,500 USD 431,171 373,985 5.61RBS Market Access Rogers International Commodity Indexes UCITS ETF 24,939 USD 570,273 420,586 6.31

1,001,444 794,571 11.92

Total other transferable securities : investment fu nds 1,001,444 794,571 11.92

Financial assets at fair value through profit or lo ss 8,274,662 6,462,452 96.96 Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of NetMaturity Counterparty Currency Purchased Currency S old (Depreciation) Assets04-Jan-16 RBC IS Bank Luxembourg EUR 3,863 CZK 104,500 (4) -04-Jan-16 RBC IS Bank Luxembourg EUR 60 PLN 253 1 -05-Jan-16 RBC IS Bank Luxembourg EUR 2,352 CZK 63,602 (2) -05-Jan-16 RBC IS Bank Luxembourg EUR 228 PLN 969 2 -05-Jan-16 RBC IS Bank Luxembourg EUR 31 PLN 132 -. -05-Jan-16 RBC IS Bank Luxembourg PLN 3 EUR 1 -. -21-Jan-16 RBC IS Bank Luxembourg EUR 5,975,583 USD 6,500,000 (5,104) (0.08)29-Jan-16 RBC IS Bank Luxembourg CZK 29,428,347 EUR 1,091,517 (2,754) (0.04)29-Jan-16 RBC IS Bank Luxembourg PLN 5,635,591 EUR 1,327,063 (15,240) (0.23)29-Jan-16 RBC IS Bank Luxembourg PLN 114,840 EUR 27,026 (294) -29-Jan-16 RBC IS Bank Luxembourg PLN 1,101 EUR 259 (3) -

Net profit on open forward foreign exchange contrac ts (23,398) (0.35) Net financial derivative instruments (23,398) (0.35) Cash and other net assets 226,223 3.39



42

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Emerging Europe Fund


The investment objective of the Fund is to achieve long term capital appreciation through exposure to the emerging equity markets of the Central, Eastern and South Eastern European region and the Commonwealth of Independent States, including the Czech Republic, the Slovak Republic, Russia, Poland, Hungary, Romania, Slovenia, Croatia, Bulgaria, Serbia, Turkey, Latvia, Lithuania, Estonia, Ukraine, Belorussia and Kazakhstan. These are not as advanced as markets of developed economies but which are experiencing growth often fuelled by growth in domestic consumption and investment and should gradually converge with those of the more developed economies in time.

The Fund achieves its investment objective by employing a bottom-up approach to investing and considering factors such as a company’s position on its chosen market, its comparative advantages over competitors, the implications of any vertical fundamental analysis (stability of the company’s financial indicators over time) and any horizontal fundamental analysis (comparison with other companies in the sector) of a target stock.

The derivatives used by the Fund may include foreign exchange forwards and swaps and they may be used for hedging purposes, but the FX-currency exposure has remained fully open.

Over the first quarter of the year, markets in Central and Eastern Europe performed well with the pan-regional CECEUR indexes (capitalization weighted indexes for the CEE region) reaching a 16% high, especially driven by a strong performance in Hungary thanks to a shift to pro-market policies by the government. In the second quarter of the year, the performance of CEE markets started to dramatically deteriorate. First was Poland, where stocks started to lose ground ahead of the presidential election. After the election, the newly elected president and his poll leading opposition party started to push for various anti-market policies, such as special taxes for banks, insurance companies, asset managers, telecoms and retail companies. Russian equities partially recovered from deep losses incurred at the end of 2014, but remained very volatile. Turkish equities also suffered from political risk ahead of the country’s general election at the beginning of June, which increased uncertainty about future government policies. In May and June, Greek troubles further lowered investor confidence and pushed global as well as emerging equity markets lower.

As The Law and Justice Party‘s (PiS) win ended eight years of centrist rule in Poland and provided Eurosceptic conservatives with a clear victory, the fall of Polish equities accelerated. Facing new tax burdens, the weakness was driven especially by the financial sector due to its high weight in the WIG 20 indexes.

The performance of CEE indexes varied across the countries also in the last quarter. Most of them fell behind Western Europe and CEE equities saw very volatile trading, in Poland influenced by the result of polish elections and following uncertainties connected with sectorial taxes and draft bill aimed at aiding FX mortgages.

Overall, performance of equities in Central and Eastern Europe lagged behind the improving economic growth in the region in 2015. The wide CECE EUR indexes recorded a more than 12% decline for the year as aside from banks, which represent 30–50% of the regional market capitalisation, utilities also continued to be under pressure due to low electricity prices and telecoms scrapped or lowered their dividends due to costly auctions for spectrum frequencies (4G/LTE).

Due to its underweight positions mainly in Poland, Turkey and Russia and bets on Romanian stocks and Austrian real estate names, the Fund heavily over-performed the composite CECE EUR indexes. The Fund remains open to currency risk.


43

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Emerging Europe Fund (continued) GENERALI CEE EMERGING EUROPE I EUR


GENERALI CEE EMERGING EUROPE Y EUR


GENERALI CEE EMERGING EUROPE A CZK

Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 240.88 40,243,073.20 1,470,210.48 31/12/2014 232.25 54,492,001.13 1,966,134.27 31/01/2015 237.72 55,785,295.10 2,011,127.97 28/02/2015 246.84 57,867,088.04 2,105,223.93 31/03/2015 249.66 58,441,106.15 2,120,802.69 30/04/2015 260.85 61,335,447.39 2,232,601.76 31/05/2015 256.53 59,215,284.41 2,198,778.67 30/06/2015 244.52 57,502,376.96 2,109,452.70 31/07/2015 245.09 57,966,115.60 2,140,368.06 31/08/2015 229.84 54,387,266.19 2,011,333.79 30/09/2015 223.11 52,849,035.59 1,944,749.83 31/10/2015 233.56 55,372,099.24 2,043,652.31 30/11/2015 234.74 55,773,021.08 2,058,987.40 31/12/2015 223.47 53,007,115.14 1,961,648.74


44

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Emerging Europe Fund (continued) GENERALI CEE EMERGING EUROPE A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 42.91 6,091.60 1,465.07 31/12/2014 42.21 18,626.25 4,333.61 31/01/2015 43.25 20,397.55 4,871.37 28/02/2015 44.99 21,983.32 5,296.83 31/03/2015 45.49 1,963,378.20 482,157.40 30/04/2015 47.56 2,400,073.40 592,328.99 31/05/2015 46.81 2,608,748.76 644,621.70 30/06/2015 44.71 2,534,846.48 604,918.70 31/07/2015 44.81 2,542,594.92 612,823.21 31/08/2015 42.10 2,388,027.41 564,912.88 30/09/2015 40.96 2,323,894.08 547,493.86 31/10/2015 42.98 2,438,226.97 572,988.34 30/11/2015 43.26 2,458,499.05 574,769.82 31/12/2015 41.27 2,343,011.39 546,189.35


In the largest central and eastern European countries, GDP growth experienced slow recovery with the exception of Russia, where the economy is facing a recession. The Fund’s investment universe is heavily dependent on the situation in Western Europe, which continues to be under pressure for many reasons, demanding more non-standard measures to be provided by the European Central Bank.

We keep an eye on Poland as the WIG index suffered heavily in 2015. However we still remain very cautious as more negative news flow is likely on the back of political developments. As Russia is heavily influenced by the development of the crude and ruble, we would rather monitor the situation there and remain underweight. Political risk aside, the region is projected to regain momentum towards a healthy economic growth (case by case) on the back of improving domestic demand and continued accommodative monetary policy. The Czech Republic and Poland are expected to lead the way.


45

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Emerging Europe Fund

Acquisition cost Fair Value % of Net

Description Quantity Currency EUR EUR Assets Listed securities : equities AUSTRIA BUWOG AG 14,586 EUR 241,869 291,793 0.95 CA Immobilien Anlagen AG 19,000 EUR 312,585 319,770 1.05 Conwert Immobilien Invest SE 20,000 EUR 246,838 280,800 0.92 Erste Group Bank AG 9,160 CZK 171,299 263,054 0.86 Erste Group Bank AG 38,000 EUR 824,208 1,098,580 3.59 IMMOFINANZ AG 121,374 EUR 323,444 255,007 0.83 Vienna Insurance Group AG Wiener Versicherung Gruppe 30,000 CZK 1,050,525 764,607 2.50

3,170,768 3,273,611 10.70

CROATIA Hrvatski Telekom dd 22,697 HRK 426,410 428,946 1.40

426,410 428,946 1.40

CZECH REPUBLIC CEZ AS 49,000 CZK 1,182,049 805,674 2.63 Kofola CS AS 13,152 CZK 248,184 238,493 0.78 Komercni banka as 6,238 CZK 1,143,332 1,142,714 3.74 Philip Morris CR AS 450 CZK 190,343 199,823 0.65 Pivovary Lobkowicz Group AS 34,715 CZK 202,520 266,448 0.87

2,966,428 2,653,152 8.67

FEDERATION OF RUSSIA Gazprom PAO 186,000 USD 923,809 630,308 2.06 Lukoil PJSC SADR 16,950 USD 756,253 501,728 1.64 Lukoil PJSC 5,750 RUB 249,160 170,018 0.56 Mobile Telesystems PJSC 13,000 USD 146,843 73,957 0.24 Novatek OAO SGDR 4,299 USD 359,876 322,953 1.06 Novatek OAO 9,900 RUB 83,552 73,746 0.24 Rostelecom PJSC 18,000 USD 138,685 123,447 0.40 Rosneft OAO 200,000 USD 732,551 639,971 2.09 Sberbank of Russia PJSC 130,000 USD 613,085 692,903 2.27 Surgutneftegas OAO 42,705 USD 266,639 179,264 0.59 Surgutneftegas OAO Pref 230,000 RUB 163,229 128,207 0.42

4,433,682 3,536,502 11.57

GERMANY UNIWHEELS AG 9,500 PLN 255,887 278,816 0.91

255,887 278,816 0.91

GREAT BRITAIN Evraz PLC 32,650 GBP 75,803 32,450 0.11

75,803 32,450 0.11


46

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Emerging Europe Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

HUNGARY Magyar Telekom Telecommunications PLC 400,000 HUF 502,258 513,915 1.68 MOL Hungarian Oil & Gas PLC 23,000 HUF 1,274,843 1,037,530 3.39 OTP Bank PLC 70,000 HUF 1,012,535 1,329,091 4.34 Richter Gedeon Nyrt 56,000 HUF 702,502 974,313 3.19

3,492,138 3,854,849 12.60

JERSEY Atrium European Real Estate Ltd 165,000 EUR 689,535 589,050 1.93

689,535 589,050 1.93

LUXEMBOURG Kernel Holding SA 7,347 PLN 90,211 82,380 0.27 Pegas Nonwovens SA 6,000 CZK 155,514 162,314 0.53

245,725 244,694 0.80

POLAND Asseco Poland SA 16,000 PLN 172,107 211,854 0.69 Bank Millennium SA 78,861 PLN 132,380 102,213 0.33 Bank Pekao SA 18,843 PLN 814,896 630,334 2.06 Bank Zachodni WBK SA 5,300 PLN 442,590 350,884 1.15 CCC SA 4,300 PLN 199,803 138,881 0.45 Globe Trade Centre SA 34,846 PLN 83,437 58,080 0.19 Orange Polska SA 50,000 PLN 117,038 76,461 0.25 PGE Polska Grupa Energetyczna SA 197,000 PLN 869,948 587,362 1.92 Polski Koncern Naftowy ORLEN SA 13,000 PLN 146,986 205,618 0.67 Powszechna Kasa Oszczednosci Bank Polski SA 139,000 PLN 1,223,607 885,571 2.89 Powszechny Zaklad Ubezpieczen SA 47,000 PLN 454,167 372,736 1.22 Tauron Polska Energia SA 200,000 PLN 191,508 134,274 0.44

4,848,467 3,754,268 12.26

ROMANIA Banca Transilvania 1,508,000 RON 309,345 810,447 2.65 BRD-Groupe Societe Generale SA 400,000 RON 793,824 1,070,441 3.50 Electrica SA 200,000 RON 541,396 539,644 1.76 OMV Petrom SA 8,050,228 RON 722,946 516,325 1.69 Societatea Nationala de Gaze Naturale ROMGAZ SA 108,646 RON 802,152 653,582 2.14 Transelectrica SA 28,537 RON 85,451 183,977 0.60 Transgaz SA Medias 4,617 RON 200,196 282,850 0.93

3,455,310 4,057,266 13.27

SLOVENIA Gorenje dd 7,510 EUR 31,700 34,546 0.11 Krka dd Novo mesto 3,201 EUR 163,321 208,705 0.68 Petrol DD Ljubljana 531 EUR 115,705 135,830 0.44 Telekom Slovenije DD 958 EUR 95,729 69,944 0.23 Zavarovalnica Triglav DD 3,408 EUR 58,163 80,088 0.26

464,618 529,113 1.72


47

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Emerging Europe Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

TURKEY Akbank TAS 251,160 TRY 767,256 530,718 1.73 Arcelik AS 25,547 TRY 119,129 112,558 0.37 BIM Birlesik Magazalar AS 27,468 TRY 443,050 444,843 1.45 Enka Insaat ve Sanayi AS 72,513 TRY 131,311 103,370 0.34 Haci Omer Sabanci Holding AS 132,225 TRY 474,897 345,289 1.13 Koza Altin Isletmeleri AS 6,917 TRY 80,980 26,789 0.09 TAV Havalimanlari Holding AS 22,013 TRY 106,752 126,285 0.41 Tofas Turk Otomobil Fabrikasi AS 18,267 TRY 88,966 109,173 0.36 Tupras Turkiye Petrol Rafinerileri AS 18,107 TRY 297,304 397,461 1.30 Turk Hava Yollari AO 101,710 TRY 279,175 237,054 0.78 Turk Telekomunikasyon AS 120,000 TRY 257,467 206,639 0.68 Turkcell Iletisim Hizmetleri AS 81,057 TRY 351,455 253,084 0.83 Turkiye Garanti Bankasi AS 360,000 TRY 1,009,657 808,391 2.64 Turkiye Halk Bankasi AS 91,354 TRY 597,433 299,352 0.98 Yapi ve Kredi Bankasi AS 114,645 TRY 209,729 118,957 0.39

5,214,561 4,119,963 13.48


Listed securities : exchange traded funds ROMANIA Fondul Proprietatea SA/Fund 8,000,000 RON 1,187,455 1,433,151 4.68

1,187,455 1,433,151 4.68

Total listed securities : exchange traded funds 1,187,455 1,433,151 4.68

Financial assets at fair value through profit or lo ss 30,926,787 28,785,831 94.10 Fair Value % of Net Description EUR Assets

Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets 05-Jan-16 RBC IS Bank Luxembourg EUR 41 CZK 1,104 - - 05-Jan-16 RBC IS Bank Luxembourg EUR 9 PLN 40 - - 29-Jan-16 RBC IS Bank Luxembourg CZK 53,220,689 EUR 1,973,992 (4,980) (0.02) 29-Jan-16 RBC IS Bank Luxembourg PLN 2,338,306 EUR 550,622 (6,324) (0.02) Net loss on open forward foreign exchange contracts (11,304) (0.04) Net financial derivative instruments (11,304) (0.04) Cash and other net assets 1,816,542 5.94 Total net assets attributable to holders of redeema ble participating shares 30,591,069 100.00


48

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Emerging Europe Bond Fund


The Fund aims to grow its assets in the long term through exposure to the debt instruments of the Emerging Markets mainly of the Central, Eastern and South Eastern European region and the Commonwealth of Independent States. To achieve its objective the Fund invests in bonds such as Eurobonds, corporate bonds, international institution bonds, bonds of governments, government agencies and bonds issued by banks or other corporations or governments of countries that are members of the OECD or Emerging Markets countries (including the Commonwealth of Independent States) or their agencies or associated entities and other transferable debt instruments.

The Fund will use a limited number of simple derivative instruments such as swaps and forwards for non-complex efficient portfolio management and hedging. The Investment Manager has full discretion in selecting the Fund’s assets. The Fund has particular targets in relation to market sectors of the Central, Eastern and South Eastern Europe and the Commonwealth of Independent States.

The Fund achieves its investment objective by employing a top-down approach to investing. Analysis of the macroeconomic environment in respective countries - business cycle position, price growth and its structure, external and internal imbalances – is the corner stone of the investment process. An important part in decision-making process is the evaluation of global risk appetite.

The year 2015 was a very successful year for the CEE region. A combination of external demand, cohesion fund inflow and falling unemployment led to the acceleration of growth in the region. This was combined with low commodity prices and imported disinflation from the key trade partner, the Eurozone. This environment led to stable exchange rates, and with the exception of the Polish government, to a decline in yields. The situation remained difficult in Russia where yields were pulled down by a severe recession and calming of geopolitics in eastern Ukraine. The Ruble appreciated in H1 but weakened in H2 with the unexpected further drop in the oil price. Full year net performance of the Fund thus was positive of +5.7% after fees.

GENERALI CEE EMERG EU BOND A EUR Date NAV per Share Market Value (EUR) Market Value (EUR)

31/12/2013 9.84 21,006.58 21,006.58 31/12/2014 9.29 25,161.22 25,161.22 31/01/2015 9.35 24,290.37 24,290.37 28/02/2015 9.66 27,528.56 27,528.56 31/03/2015 9.94 27,703.44 27,703.44 30/04/2015 10.15 28,528.11 28,488.21 31/05/2015 10.06 28,175.70 28,258.84 30/06/2015 9.81 25,516.30 25,516.30 31/07/2015 9.96 22,687.88 22,687.88 31/08/2015 9.78 22,131.80 22,131.80 30/09/2015 9.85 23,412.78 23,412.78 31/10/2015 9.99 23,257.79 23,257.79 30/11/2015 10.00 22,213.50 22,265.30 31/12/2015 9.82 21,861.18 21,861.18


49

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Emerging Europe Bond Fund (continued) GENERALI CEE EMERG EU BOND Y EUR Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 9.96 30,807,835.11 30,807,835.11 31/12/2014 9.50 29,386,118.36 29,386,118.36 31/01/2015 9.58 29,618,008.49 29,618,008.49 28/02/2015 9.90 30,621,516.57 30,621,516.57 31/03/2015 10.20 31,539,698.60 31,539,698.60 30/04/2015 10.42 32,243,203.58 32,243,203.58 31/05/2015 10.34 31,989,436.08 31,989,436.08 30/06/2015 10.09 31,212,684.31 31,212,684.31 31/07/2015 10.25 31,718,575.69 31,718,575.69 31/08/2015 10.08 31,181,501.06 31,181,501.06 30/09/2015 10.16 31,431,805.55 31,431,805.55 31/10/2015 10.32 31,921,436.54 31,921,436.54 30/11/2015 10.34 31,980,696.44 31,980,696.44 31/12/2015 10.16 31,429,481.98 31,429,481.98

GENERALI CEE EMERG EU BOND A CZK

Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 253.19 493,272.22 18,020.84 31/12/2014 237.52 596,258.37 21,513.69 31/01/2015 239.10 607,979.70 21,918.41 28/02/2015 247.11 635,823.21 23,131.46 31/03/2015 254.07 665,129.10 24,137.25 30/04/2015 259.48 682,575.91 24,833.13 31/05/2015 257.08 676,046.63 24,741.28 30/06/2015 250.51 663,225.94 24,330.19 31/07/2015 254.30 696,648.06 25,723.36 31/08/2015 249.58 694,837.10 25,696.26 30/09/2015 251.10 701,171.09 25,801.84 31/10/2015 254.69 713,313.43 26,326.70 30/11/2015 254.75 713,967.73 26,462.55 31/12/2015 249.41 703,390.94 26,030.58

GENERALI CEE EMERG EU BOND A PLN Date NAV per Share Market Value (PLN) Market Value (EUR) 19/12/2013 40.87 497.18 119.33 31/12/2014 - - - 31/01/2015 40.95 508.50 121.44 28/02/2015 42.37 526.34 126.82 31/03/2015 43.73 542.93 133.33 30/04/2015 44.73 555.75 137.42 31/05/2015 44.42 551.87 134.04 30/06/2015 43.41 539.14 128.66 31/07/2015 44.19 548.66 132.24 31/08/2015 43.50 539.99 127.74 30/09/2015 43.89 545.22 128.45 31/10/2015 44.64 554.51 130.31 30/11/2015 44.80 556.40 130.28 31/12/2015 44.10 547.63 127.66

The future market outlook for the Fund In H1 2016, we expect a bond friendly environment driven by the QE monetary policy of the ECB and its further cutting of deposit rates. We expect another 20bp cut to -0.5%. We expect that China’s rebalancing process will have only limited impact on asset prices in the CEE region. Russia will suffer another year of recession resulting in decline of yields and a weak currency. Generally, we assume stability in monetary policy rates across the CEE region. Poland might further reduce rates after the appointment of the new Central bank board and conversely we cannot exclude monetary tightening in Romania at the end of 2016. CEE economies are sound, balanced and in the middle of the expansion part of the business cycle.


50

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Emerging Europe Bond Fund Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets Listed securities : bonds AUSTRIA Raiffeisen Bank International AG 5.163% 18/06/2024 EMTN 1,000,000 EUR 972,598 866,000 2.75

972,598 866,000 2.75

BULGARIA Bulgaria Government International Bond 2% 26/03/2022 EMTN 325,000 EUR 325,813 330,700 1.05

325,813 330,700 1.05

FEDERATION OF RUSSIA Russian Federal Bond - OFZ 7.4% 14/06/2017 60,000,000 RUB 1,549,491 731,979 2.33 Russian Federal Bond - OFZ 7.5% 27/02/2019 122,500,000 RUB 2,037,323 1,453,233 4.62 Russian Foreign Bond - Eurobond 3.625% 16/09/2020 500,000 EUR 501,201 512,554 1.63

4,088,015 2,697,766 8.58

HUNGARY Hungary Government Bond 3.5% 24/06/2020 480,000,000 HUF 1,608,310 1,580,332 5.02 Hungary Government Bond 5.5% 20/12/2018 140,000,000 HUF 480,123 482,837 1.53 Hungary Government Bond 5.5% 24/06/2025 255,000,000 HUF 914,270 946,661 3.01 Hungary Government Bond 6% 24/11/2023 165,000,000 HUF 576,879 618,505 1.96 Hungary Government Bond 6.5% 24/06/2019 335,000,000 HUF 1,159,214 1,203,088 3.82 Hungary Government International Bond 5.75% 11/06/2018 600,000 EUR 602,313 671,545 2.13

5,341,109 5,502,968 17.47

IRELAND Gazprombank OJSC Via GPB Eurobond Finance PLC 5.625% 17/05/2017 EMTN 700,000 USD 505,733 656,020 2.08 Mobile Telesystems OJSC via MTS International Funding Ltd 8.625% 22/06/2020 600,000 USD 488,680 611,899 1.94

994,413 1,267,919 4.02

LUXEMBOURG Russian Agricultural Bank OJSC Via RSHB Capital SA 5.1% 25/07/2018 700,000 USD 483,227 640,194 2.03

483,227 640,194 2.03

POLAND Poland Government Bond 2.5% 25/07/2018 3,700,000 PLN 886,346 878,971 2.79 Poland Government Bond 3.25% 25/07/2025 5,000,000 PLN 1,210,944 1,199,675 3.81 Poland Government Bond 3.75% 25/04/2018 10,000,000 PLN 2,512,864 2,439,890 7.75 Poland Government Bond 4.75% 25/04/2017 3,200,000 PLN 800,167 776,960 2.47 Poland Government Bond 5.25% 25/10/2017 6,300,000 PLN 1,684,961 1,562,729 4.96 Poland Government Bond 5.5% 25/10/2019 5,700,000 PLN 1,549,253 1,497,503 4.76

8,644,535 8,355,728 26.54


51

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Emerging Europe Bond Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

ROMANIA Romania Government Bond 5.8% 26/07/2027 4,000,000 RON 999,869 1,017,440 3.23 Romania Government Bond 5.85% 26/04/2023 7,300,000 RON 1,765,116 1,869,462 5.94 Romanian Government International Bond 4.875% 07/11/2019 EMTN 900,000 EUR 949,057 1,039,551 3.30 Romanian Government International Bond 6.5% 18/06/2018 400,000 EUR 435,044 459,531 1.46

4,149,086 4,385,984 13.93

SLOVENIA Slovenia Government Bond 5.125% 30/03/2026 1,300,000 EUR 1,248,425 1,718,779 5.46

1,248,425 1,718,779 5.46

TURKEY Turkey Government Bond 8.8% 14/11/2018 4,000,000 TRY 1,218,838 1,207,918 3.84 Turkey Government International Bond 5.125% 18/05/2020 500,000 EUR 572,250 556,300 1.77

1,791,088 1,764,218 5.61


Other organised market : bonds ROMANIA Romania Government Bond 4.75% 24/02/2025 5,000,000 RON 1,168,271 1,195,610 3.80 Romania Government Bond 5.9% 26/07/2017 5,100,000 RON 1,215,780 1,213,990 3.86

2,384,051 2,409,600 7.66

Total other organised market : bonds 2,384,051 2,409,600 7.66

Bond interest accrued 603,778 1.92 Financial assets at fair value through profit or lo ss 30,422,360 30,543,634 97.02 Financial Derivative Instruments Open Forward Foreign Currency Contracts

Unrealised Appreciation/ % of Net Maturity Counterparty Currency Purchased Currency S old (Depreciation) Assets 05-Jan-16 RBC IS Bank Luxembourg EUR 18 CZK 490 - - 26-Jan-16 RBC IS Bank Luxembourg EUR 3,282,597 USD 3,500,000 62,664 0.20 26-Jan-16 RBC IS Bank Luxembourg EUR 734,027 RUB 53,000,000 71,982 0.23 29-Jan-16 RBC IS Bank Luxembourg CZK 694,859 EUR 25,773 (65) - 29-Jan-16 RBC IS Bank Luxembourg PLN 542 EUR 128 (1) - 01-Feb-16 RBC IS Bank Luxembourg EUR 454,158 HUF 144,000,000 (890) - 01-Feb-16 RBC IS Bank Luxembourg EUR 953,674 PLN 4,050,000 11,100 0.04






52

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Balanced Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve long-term capital appreciation and to reduce the portfolio’s overall volatility through investments in a diversified and actively managed portfolio of transferable securities.

In seeking to achieve the Fund’s objective, the asset allocation, parameters and composition of the portfolio may be adjusted (within investment limits) by the Investment Manager in order to profit from the development of individual markets. The Investment Manager will use a variety of techniques including fundamental analysis of issuers, analysis and prediction of macro-economic indices, interest rates, commodity prices, foreign exchange rates, yield curve and analysis of the regional political situation. In addition with regards to fixed income securities the decision making process of the Investment Manager is particularly focused on the price, yield to maturity, rating, fundamentals of the issuer, the country and other parameters of securities such as maturity and whether the security is fixed or floating rate etc. In the final step of its analysis, the Investment Manager checks the appropriateness of the proposed investments, e.g. if the bond is listed on a Recognized Exchange. With regards to equities, the Investment Manager will employ mainly a bottom-up approach to investing, and will typically consider factors such as a company’s position on its chosen market, its comparative advantages over competitors, the implications of any vertical fundamental analysis (stability of the company’s financial indicators over time) and any horizontal fundamental analysis (comparison with other companies in the sector) of particular stocks.

The target/neutral allocation consists of:

- Equities and equity related securities between 35% and 40% of NAV.

- Bonds between 55% and 60% of NAV, with a regional allocation in EE and CIS, of which ½ will be corporates and ½ government and quasi-sovereign bonds.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and currency swaps) and are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and it is not intended to declare dividends.

Over the first half of the year US equity markets, which represent the main part of the Fund’s equity exposure, recorded a 1% gain after moving in a tight range, as negative factors (weak GDP and earnings growth) were offset by corporate equity buybacks and the extension of the zero-interest-rate-policy. European equity markets rebounded strongly during the first quarter of 2015 in expectation of the continuation of the ECB quantitative easing programme and earnings recovery were supported by an economic recovery. Emerging markets underperformed developed markets, as commodity prices remained weak along with the slowdown in the Chinese economy and as a number of emerging economies faced country-specific fiscal and/or monetary problems. In the late summer global equity markets experienced a double digit double-bottom correction, triggered firstly by a Chinese Yuan devaluation and secondly by the Fed’s worries over the global economy, as chair Yellen indicated that global developments overshadowed signs of strength in the United States. Market sentiment on equity markets significantly improved in October, mainly thanks to the central bank (ECB, Fed, PBoC) actions so equities managed to erase most of their recent losses. The US earnings season also contributed positively, as many companies (mainly from the IT and healthcare sectors) surprised positively. Global equity markets were further supported by the ECB, as Draghi said that lowering of the deposit rate was discussed and the Council indicated that it may consider adding monetary stimulus at its December meeting. In December, market volatility started to rise along with investors’ nervousness regarding the Fed’s outlook for the pace of interest rate hikes in 2016. EU markets also reacted sharply negatively to the ECB decision that disappointed, as the market was apparently hoping for bolder action (expansion of monthly asset purchases). The market reaction to the first interest rate hike in the US in almost 10 years was rather positive, as the FOMC expects only gradual increases in the Fed funds rate and the statement emphasized the conditional nature of the outlook, despite the fact that the indicated path remains above current market expectations that include only around two rate hikes in 2016.


53

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Balanced Fund (continued) The Investment objective of the Fund How the Fund achieves its investment objective (con tinued)

US equity markets represented by the S&P 500 index finished the year with a 4% gain, while the STOXX Europe 50 Index managed to deliver a 11% gain, despite some losses incurred in 2H. Emerging markets, as represented by the broad-based MSCI Emerging Markets index lost 14% driven down by the negative development of commodity-exporting economies, weak commodity prices and local currency devaluations.

US Treasury yields moved slightly up in 2015. However, as the Fed hesitated to start its key rate cycle, the impact was smaller than expected at the start of the year. Long-dated euro area core yields were very volatile in 2015. After the QE induced duration shock which triggered a fall to 0.05% in 10-year Bund yields in April, the strongest sell-off for years drove 10-year Bund yields close to 1% in June. Since then, core yields have drifted down. In contrast, yields at the short end of the curve have moved further into negative territory mainly driven by the purchases of the ECB and the decision to lower the deposit rate to -0.3% in December.

The performance of developed markets corporate bonds fell short of expectations in 2015 for a number of reasons. Some fundamental figures (debt leverage, interest coverage, etc.) have started to deteriorate since 2H 2015, not only due to depressed commodity prices but also due to equity-friendly central bank policy, finally leading to the rise in the global speculative-grade default rate to 3.4% at the end of 2015, up from 2.2% recorded a year ago. In addition, increasing risk aversion on global equity markets and elevated volatility significantly contributed to the widening in credit spreads on both developed and emerging markets. Despite the number of adverse headwinds, corporate bonds contributed positively to the Fund’s performance. We took advantage of the high carry of EU non-investment grade bonds and kept significant exposure to high-yield i) Russian corporate bonds, profiting from the Minsk agreement and a ceasefire on Eastern Ukraine and also from balance sheet deleveraging in some cases, ii) Chinese developer's bonds, profiting from easing in PBoC monetary policy and ii) Kazakh quasi sovereign bonds. On the equity side, we have been keeping an underweight position (c.a. 6 % NAV) in emerging markets, in favour of developed markets (c.a. 27% NAV) via selected global brand names. With regards to individual stock exposure, we preferred stocks whose brand value we expect to grow at an above-average pace and with relatively low valuations (based on P/E, P/CF, etc.) in comparison to sector peers.

GENERALI CEE BALANCED A EUR

Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 - - - 31/12/2014 9.98 2,681,077.22 2,681,077.22 31/01/2015 9.95 2,686,118.67 2,686,118.67 28/02/2015 10.16 2,744,075.86 2,744,075.86 31/03/2015 10.18 2,752,786.10 2,752,786.10 30/04/2015 10.28 2,777,835.86 2,783,505.80 31/05/2015 10.22 2,770,353.35 2,772,230.49 30/06/2015 10.11 2,819,715.78 2,819,715.78 31/07/2015 10.11 2,825,180.77 2,825,180.77 31/08/2015 9.80 2,743,769.72 2,743,769.72 30/09/2015 9.67 2,716,050.60 2,716,050.60 31/10/2015 10.05 2,731,535.80 2,731,535.80 30/11/2015 10.10 2,708,276.07 2,705,299.48 31/12/2015 9.92 2,657,394.58 2,657,394.58


54

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Balanced Fund (continued) GENERALI CEE BALANCED A CZK

Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 - - - 31/12/2014 274.10 34,593,565.64 1,248,175.76 31/01/2015 273.22 106,421,539.83 3,836,626.39 28/02/2015 278.72 131,881,468.11 4,797,891.72 31/03/2015 279.14 149,673,503.74 5,431,587.29 30/04/2015 281.97 160,309,596.90 5,838,388.27 31/05/2015 280.10 167,880,080.58 6,114,967.90 30/06/2015 277.23 177,497,163.02 6,511,415.52 31/07/2015 277.05 185,474,692.97 6,848,554.62 31/08/2015 267.97 187,920,957.20 6,949,637.25 30/09/2015 264.42 189,757,982.72 6,982,753.81 31/10/2015 274.47 202,061,288.94 7,457,600.95 30/11/2015 275.84 208,119,921.67 7,682,324.80 31/12/2015 270.22 212,176,734.14 7,852,082.16

GENERALI CEE BALANCED A PLN

Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 - - - 31/12/2014 42.72 131,273.04 30,542.18 31/01/2015 42.67 131,631.23 31,436.35 28/02/2015 43.58 140,543.06 33,863.53 31/03/2015 43.73 145,604.36 35,756.85 30/04/2015 44.20 147,095.69 36,436.18 31/05/2015 43.97 183,769.74 44,655.40 30/06/2015 43.58 182,292.61 43,502.52 31/07/2015 43.61 190,545.25 45,925.74 31/08/2015 42.27 184,973.89 43,757.51 30/09/2015 41.77 168,091.84 39,601.31 31/10/2015 43.45 166,202.34 39,057.89 30/11/2015 43.73 167,336.53 39,181.45 31/12/2015 42.98 163,016.33 38,001.43


Looking ahead, we anticipate 2016 to be characterized by a mediocre, albeit resilient economic recovery in the EU, driven by the ECB's QE, low commodity prices and the weak euro. The US economy is starting to look fragile, due to accelerated deterioration in the manufacturing sector (driven down by the fall in oil prices, somewhat weaker export demand from emerging markets (EM) and a strong USD) and more recently also due to the weakening in some service sectors. The economic outlook for commodity importing emerging economies is mixed. While Asian economies are negatively influenced by an ongoing slowdown in China, the CEE region profits from the EMU economic recovery. On the other hand, commodity-exporting emerging economies are set to contract further, given the broad-based commodity oversupply contributing to depreciation in local currencies, an increase in inflation and hence restrictive monetary policies in many cases. Low energy prices and a still negative output gap will continue to keep underlying inflation low in developed economies.

Regarding central bank policies, we expect ongoing strong support from major central banks, including the ECB, the Bank of Japan and the People’s Bank of China. In the case of the Fed, given the accelerated deterioration in the US economy, the recently announced gradual normalization of monetary policy is increasingly uncertain.

There are number of risks. Apart from uncertain global economic development, the major risk relates to the Fed. While it is likely to proceed extremely carefully in normalizing its key rate, a clear risk that the markets will overreact remains. In this case, US bonds and EM assets seem prone to suffer the most. There is also greater risk that European integration faces more severe setbacks, given that the UK’s forthcoming referendum on EU membership, political uncertainty in the periphery and ongoing migrant issue risks eroding political cohesion over the medium term.


55

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Balanced Fund (continued)

The challenges for bond investors remain substantial. Core yields on both sides of the Atlantic are likely to remain in a narrow trading range in 2016 as concerns about global growth and an accommodative monetary policy stance persist. With yields on government bonds and IG credit already depressed, the only way to achieve an attractive total return is to invest in non-investment grade credits. Unfortunately, there are a number of reasons to remain bearish for credit for 2016. Firstly, concerns about the global economy are unlikely to vanish. Secondly, increasing volatility on equity markets generally widens credit spreads. Thirdly, Moody's forecast that the global speculative-grade default rate will continue to rise to 3.9% by the end of 2016, driven by the commodity sectors. In this environment the investment strategy will be based mainly on a selection of fundamentally strong and liquid credit names. Similar to past years we are also going to profit from high carry of non-investment grade credits, where we will offset the higher fundamental risk by shorter duration. Moreover, we have already implemented and are going to continue with a more active tactical strategy, i.e. we will alter the Fund's composition and average duration depending on short-term market influences.

We see upside potential for equities in the euro area, underpinned by higher earnings, a weaker euro, decent valuations and a dividend yield of around 3%. For the US, however, the equity cycle appears more mature, with already decreasing earnings and the normalization of monetary policy creating some headwinds to valuations. We continue to be cautious on the EM but at some time in 2016 there could be opportunities to buy as we think they are experiencing their greatest capitulation phase. The asset allocation, parameters and composition of the equity part will be adjusted in order to profit from the development of individual markets. In terms of risk/return profile we will keep a diversified and balanced portfolio.


56

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Balanced Fund Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets

Listed securities : equities BELGIUM Anheuser-Busch InBev SA/NV 620 EUR 54,028 70,928 0.67

54,028 70,928 0.67

CANADA Thomson Reuters Corp 3,000 USD 105,761 104,529 0.99

105,761 104,529 0.99

FRANCE LVMH Moet Hennessy Louis Vuitton SE 600 EUR 84,257 86,940 0.83

84,257 86,940 0.83

GERMANY Allianz SE 450 EUR 61,965 73,598 0.70Bayerische Motoren Werke AG 1,050 EUR 96,754 102,512 0.97HUGO BOSS AG 900 EUR 92,508 68,940 0.65Porsche Automobil Holding SE 2,030 EUR 137,998 101,520 0.96Siemens AG 1,000 EUR 94,077 89,880 0.85

483,302 436,450 4.13

GREAT BRITAIN BP PLC 3,342 USD 110,061 96,171 0.91

110,061 96,171 0.91

INDIA Tata Motors Ltd 3,000 USD 112,582 81,386 0.77

112,582 81,386 0.77

JAPAN Toyota Motor Corp 970 USD 102,798 109,867 1.04

102,798 109,867 1.04


63,549 63,606 0.60


87,291 90,558 0.86


57

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Balanced Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets UNITED STATES OF AMERICA 3M Co 500 USD 62,348 69,336 0.66Apple Inc 980 USD 80,589 94,960 0.90AT&T Inc 3,400 USD 94,157 107,700 1.02Boeing Co 700 USD 75,685 93,172 0.88Cisco Systems Inc 2,000 USD 43,664 49,995 0.47Coca-Cola Co 2,000 USD 68,542 79,094 0.75eBay Inc 3,050 USD 62,514 77,155 0.73Exxon Mobil Corp 670 USD 50,181 48,077 0.46FedEx Corp 700 USD 104,383 96,008 0.91Goldman Sachs Group Inc 600 USD 89,482 99,547 0.94Harley-Davidson Inc 1,880 USD 100,292 78,554 0.74Intel Corp 1,000 USD 31,982 31,713 0.30Johnson & Johnson 850 USD 69,431 80,376 0.76MasterCard Inc 450 USD 30,024 40,331 0.38Microsoft Corp 1,200 USD 42,456 61,287 0.58NIKE Inc 1,300 USD 40,303 74,795 0.71Oracle Corp 2,620 USD 88,243 88,105 0.84PayPal Holdings Inc 3,000 USD 83,277 99,972 0.95Procter & Gamble Co 1,300 USD 87,359 95,032 0.90Starbucks Corp 1,500 USD 52,328 82,891 0.79Wal-Mart Stores Inc 1,500 USD 81,457 84,645 0.80Walt Disney Co 1,050 USD 89,906 101,569 0.96Wells Fargo & Co 2,250 USD 94,877 112,593 1.07

1,623,480 1,846,907 17.50


Listed securities : bonds AUSTRIA Erste Group Bank AG 0.758% 19/07/2017 EMTN 50,000 EUR 48,110 48,984 0.47JBS Investments GmbH 7.75% 28/10/2020 200,000 USD 183,524 177,667 1.68

231,634 226,651 2.15

CAYMAN ISLANDS Geely Automobile Holdings Ltd 5.25% 06/10/2019 200,000 USD 175,369 190,095 1.80Shimao Property Holdings Ltd 6.625% 14/01/2020 200,000 USD 187,994 192,104 1.82

363,363 382,199 3.62

CROATIA Croatia Government International Bond 5.875% 09/07/2018 120,000 EUR 132,081 130,775 1.24Croatia Government International Bond 6.25% 27/04/2017 200,000 USD 187,373 190,986 1.81Croatia Government International Bond 6.75% 05/11/2019 200,000 USD 192,649 197,671 1.88

512,103 519,432 4.93

GREAT BRITAIN International Personal Finance PLC 5.75% 07/04/2021 EMTN 200,000 EUR 202,710 185,200 1.76

202,710 185,200 1.76


58

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Balanced Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets IRELAND Alfa Bank AO Via Alfa Bond Issuance PLC 7.875% 25/09/2017 100,000 USD 81,977 96,675 0.92Novolipetsk Steel via Steel Funding Ltd 4.45% 19/02/2018 200,000 USD 168,346 182,456 1.73

250,323 279,131 2.65

KAZAKHSTAN Development Bank of Kazakhstan JSC 4.125% 10/12/2022 400,000 USD 326,762 325,629 3.09Eurasian Development Bank 4.767% 20/09/2022 EMTN 200,000 USD 175,700 176,509 1.67Intergas Finance BV 6.375% 14/05/2017 300,000 USD 268,468 282,748 2.68

KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 400,000 EUR 375,200 376,414 3.57KazMunayGas National Co JSC 9.125% 02/07/2018 EMTN 100,000 USD 99,652 101,580 0.96Samruk-Energy JSC 3.75% 20/12/2017 EMTN 200,000 USD 175,506 180,429 1.71

1,421,288 1,443,309 13.68

LUXEMBOURG ALROSA Finance SA 7.75% 03/11/2020 200,000 USD 186,010 194,398 1.84Sberbank of Russia Via SB Capital SA 5.4% 24/03/2017 EMTN 200,000 USD 176,493 187,488 1.78

362,503 381,886 3.62

NETHERLANDS Halyk Savings Bank of Kazakhstan JSC 7.25% 03/05/2017 400,000 USD 350,366 380,447 3.61Petrobras Global Finance BV 2% 20/05/2016 300,000 USD 249,922 272,715 2.59

600,288 653,162 6.20

POLAND Synthos Finance AB 4% 30/09/2021 250,000 EUR 249,620 249,340 2.36

249,620 249,340 2.36

TURKEY Export Credit Bank of Turkey 5.375% 04/11/2016 600,000 USD 576,570 563,811 5.35Turkey Government International Bond 7.5% 14/07/2017 200,000 USD 198,062 197,367 1.87Turkiye Garanti Bankasi AS 4% 13/09/2017 200,000 USD 184,489 185,983 1.76Turkiye Garanti Bankasi AS 4.75% 17/10/2019 EMTN 200,000 USD 175,282 183,416 1.74Turkiye Halk Bankasi AS 4.875% 19/07/2017 200,000 USD 186,863 187,526 1.78Yapi ve Kredi Bankasi AS 6.75% 08/02/2017 200,000 USD 189,525 191,100 1.81

1,510,791 1,509,203 14.31


Listed securities : exchange traded funds IRELAND SOURCE MSCI EMERGING MARKETS UCITS ETF 21,600 USD 704,108 635,791 6.03

704,108 635,791 6.03



59

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Balanced Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets Bond interest accrued 84,945 0.81 Financial assets at fair value through profit or lo ss 9,235,840 9,537,591 90.42 Financial Derivative Instruments Open Forward Foreign Currency Contracts Unrealised Appreciation/ % of NetMaturity Counterparty Currency Purchased Currency Sold (Depreciation) Assets4-Jan-16 RBC IS Bank Luxembourg CZK 103 EUR 4 - -4-Jan-16 RBC IS Bank Luxembourg EUR 1 CZK 21 - -4-Jan-16 RBC IS Bank Luxembourg EUR 14,881 CZK 402,517 (14) -4-Jan-16 RBC IS Bank Luxembourg CZK 17,945 EUR 665 - -4-Jan-16 RBC IS Bank Luxembourg EUR 71 CZK 1,908 - -5-Jan-16 RBC IS Bank Luxembourg EUR 39 CZK 1,064 - -5-Jan-16 RBC IS Bank Luxembourg EUR 44,655 CZK 1,206,892 (6) -5-Jan-16 RBC IS Bank Luxembourg CZK 61,227 EUR 2,268 (2) -5-Jan-16 RBC IS Bank Luxembourg EUR - CZK 4 - -5-Jan-16 RBC IS Bank Luxembourg EUR - CZK 2 - -5-Jan-16 RBC IS Bank Luxembourg EUR 1 CZK 32 - -19-Jan-16 RBC IS Bank Luxembourg EUR 8,139,932 USD 8,700,000 134,721 1.2819-Jan-16 RBC IS Bank Luxembourg EUR 184,222 USD 200,000 192 (0.01)29-Jan-16 RBC IS Bank Luxembourg PLN 162,222 EUR 38,200 (439) -29-Jan-16 RBC IS Bank Luxembourg CZK 206,696,135 EUR 7,666,500 (19,342) (0.18)29-Jan-16 RBC IS Bank Luxembourg CZK 5,215,291 EUR 193,195 (244) -29-Jan-16 RBC IS Bank Luxembourg CZK 1,146,729 EUR 42,456 (30) -






60

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Dynamic Balanced Fund The Investment objective of the Fund How the Fund achieves its investment objective

The investment objective of the Fund is to achieve long-term capital appreciation and to reduce the portfolio’s overall volatility through investments in a diversified and actively managed portfolio of transferable securities.

In seeking to achieve the Fund’s objective, the asset allocation, parameters and composition of the portfolio may be adjusted (within investment limits) by the Investment Manager in order to profit from the development of individual markets. The Investment Manager will use a variety of techniques including fundamental analysis of issuers, analysis and prediction of macro-economic indices, interest rates, commodity prices, foreign exchange rates, yield curve and analysis of regional political situation. In addition with regards to fixed income securities the decision making process of the Investment Manager is particularly focused on the price, yield to maturity, rating, fundamentals of the issuer, the country and other parameters of securities such as maturity and whether the security is fixed or floating rate etc. In the final step of its analysis, the Investment Manager checks the appropriateness of the proposed investments, e.g. if the bond is listed on a Recognized Exchange. With regards to equities, the Investment Manager will employ mainly a bottom-up approach to investing, and will typically consider factors such as a company’s position on its chosen market, its comparative advantages over competitors, the implications of any vertical fundamental analysis (stability of the company’s financial indicators over time) and any horizontal fundamental analysis (comparison with other companies in the sector) of particular stocks.

The target/neutral allocation consists of:

- Equities and equity related securities at between 60% and 65% of NAV.

- Bonds at between 30% and 35% of NAV, with a regional allocation in EE and CIS, of which ½ will be corporates and ½ government and quasi-sovereign bonds.

The derivatives used by the Fund include foreign exchange forwards and swaps (currency forwards and currency swaps) and are used for hedging purposes in the range of 85–105%. Details of the derivatives which may be used are set out in the derivatives risk management process filed with the Central Bank of Ireland. The Fund reinvests all income and gains and does not intend to declare dividends.

Over the first half of the year US equity markets, which represent the main part of the Fund’s equity exposure, recorded a 1% gain after moving in a tight range, as negative factors (weak GDP and earnings growth) were offset by corporate equity buybacks and the extension of zero-interest-rate-policy. European equity markets rebounded strongly during the first quarter 2015 in expectation of the ECB quantitative easing programme and earnings recovery supported by an economic recovery. Emerging markets underperformed developed markets, as commodity prices remained weak along with a slowdown in Chinese economy and as a number of emerging economies faced country-specific fiscal and/or monetary problems. In the late summer global equity markets experienced a double digit double-bottom correction, triggered firstly by a Chinese Yuan devaluation and secondly by the Fed’s worries over the global economy, as chair Yellen indicated that global developments overshadowed signs of strength in United States. Market sentiment on equity markets significantly improved in October, mainly thanks to central bank (ECB, Fed, PBoC) actions so equities managed to erase most of their recent losses. US earnings season also contributed positively, as many companies (mainly from the IT and healthcare sectors) surprised positively. Global equity markets were further supported by the ECB, as Draghi said that lowering of the deposit rate was discussed and the Council indicated that it may consider adding monetary stimulus at its December meeting. In December, market volatility started to rise along with investors’ nervousness regarding the Fed’s outlook for the pace of interest rate hikes in 2016. EU markets also reacted sharply negatively to an ECB decision that disappointed, as the market was apparently hoping for bolder action (expansion of monthly asset purchases). The market reaction to the first interest rate hikes in the US in almost 10 years was rather positive, as the FOMC expects only gradual increase in the Fed funds rate and the statement emphasized the conditional nature of the outlook, despite the fact, that the indicated path remains above current market expectations, that include only around two rate hikes in 2016.


61

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Dynamic Balanced Fund (continued) The Investment objective of the Fund How the Fund achieves its investment objective (con tinued)

US equity markets represented by the S &P 500 index finished the year with 4% gain, while the STOXX Europe 50 Index managed to deliver a 11% gain, despite some losses incurred in 2H. Emerging markets as represented by the broad-based MSCI Emerging Markets index, lost 14% driven down by the negative development of commodity-exporting economies, weak commodity prices and local currency devaluations.

US Treasury yields moved slightly up in 2015. However, as the Fed hesitated to start its key rate cycle, the extent was less than expected at the start of the year. Long-dated euro area core yields were very volatile in 2015. After the QE induced duration shock triggered a fall to 0.05% in 10-year Bund yields in April, the strongest sell-off for years drove 10-year Bund yields close to 1% in June. Since then, core yields have drifted down. In contrast, yields at the short end of the curve have moved further into negative territory mainly driven by the purchases of the ECB and the decision to lower the deposit rate to -0.3% in December.

The performance of developed markets corporate bonds fell short of expectations in 2015 for a number of reasons. Some fundamental figures (debt leverage, interest coverage, etc.) have started to deteriorate since 2H 2015, not only due to depressed commodity prices but also due to equity-friendly policy, finally leading to the rise in global speculative-grade default rate to 3.4% at the end of 2015, up from 2.2% recorded a year ago. In addition, increasing risk aversion on global equity markets and elevated volatility significantly contributed to the widening in credit spreads on both developed and emerging markets. Despite the number of adverse headwinds, corporate bonds contributed positively to the fund’s performance. We took advantage of the high carry of EU non-investment grade bonds and kept significant exposure to high-yield i) Russian corporate bonds, profiting from the "Minsk agreement" and a ceasefire on Eastern Ukraine and also from balance sheet deleveraging in some cases, ii) Chinese developer's bonds, profiting from easing in PBoC monetary policy and ii) Kazakh quasi sovereign bonds. On the equity side, we have been keeping an underweight position (c.a. 7 % NAV) in emerging markets, in favour of developed markets (c.a. 50% NAV) via selected global brand names. As regards individual stock exposure, we preferred stocks whose brand value we expect to grow at an above-average pace and with relatively low valuation (based on P/E, P/CF, etc.) in comparison to sector peers.

GENERALI CEE DYN BALANCED A EUR Date NAV per Share Market Value (EUR) Market Value (EUR) 31/12/2013 - - - 31/12/2014 10.20 2,575,935.80 2,575,935.80 31/01/2015 10.20 2,577,736.43 2,577,736.43 28/02/2015 10.49 2,655,027.67 2,655,027.67 31/03/2015 10.48 2,655,195.00 2,655,195.00 30/04/2015 10.57 2,669,022.65 2,677,815.41 31/05/2015 10.48 2,854,295.64 2,664,955.05 30/06/2015 10.30 2,853,841.36 2,853,841.36 31/07/2015 10.30 2,858,555.59 2,858,555.59 31/08/2015 9.80 2,721,916.75 2,721,916.75 30/09/2015 9.57 2,661,016.83 2,661,016.83 31/10/2015 10.14 2,817,452.77 2,817,452.77 30/11/2015 10.21 2,836,589.36 2,833,762.96 31/12/2015 9.93 2,756,265.91 2,756,265.91


62

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Dynamic Balanced Fund (continued) GENERALI CEE DYN BALANCED A CZK Date NAV per Share Market Value (CZK) Market Value (EUR) 31/12/2013 - - - 31/12/2014 279.92 15,836,305.41 571,392.17 31/01/2015 279.32 44,697,571.71 1,611,402.01 28/02/2015 287.52 55,691,688.77 2,026,082.18 31/03/2015 287.13 63,191,041.56 2,293,175.81 30/04/2015 289.37 67,275,832.65 2,450,374.89 31/05/2015 286.96 70,663,398.24 2,571,744.26 30/06/2015 281.86 76,033,526.46 2,789,260.83 31/07/2015 281.66 79,651,328.24 2,941,083.03 31/08/2015 267.70 79,379,059.57 2,935,572.90 30/09/2015 261.15 78,761,859.05 2,898,295.31 31/10/2015 276.37 85,422,446.77 3,152,739.07 30/11/2015 278.28 88,616,462.64 3,273,970.25 31/12/2015 269.95 89,392,966.33 3,308,189.84

GENERALI CEE DYN BALANCED A PLN Date NAV per Share Market Value (PLN) Market Value (EUR) 31/12/2013 - - - 31/12/2014 43.45 80,831.56 18,806.39 31/01/2015 43.46 81,350.47 19,428.23 28/02/2015 44.78 77,571.73 18,690.73 31/03/2015 44.79 84,270.94 20,694.87 30/04/2015 45.17 88,481.52 21,944.42 31/05/2015 44.84 116,924.14 28,399.15 30/06/2015 44.12 128,253.23 30,606.50 31/07/2015 44.19 119,243.52 28,740.40 31/08/2015 42.06 108,740.82 25,723.78 30/09/2015 41.13 107,277.50 25,273.86 31/10/2015 43.57 114,515.47 26,911.37 30/11/2015 43.95 115,520.67 27,048.89 31/12/2015 42.77 111,495.20 25,991.12


Looking ahead, we anticipate 2016 to be characterized by a mediocre, albeit resilient economic recovery in the EU, driven by the ECB's QE, low commodity prices and the weak euro. The US economy is starting to look fragile, due to accelerated deterioration in the manufacturing sector (driven down by the fall in oil prices, somewhat weaker export demand from emerging markets (EM) and a strong USD) and more recently also due to weakening in some service sectors. The economic outlook for commodity importing emerging economies is mixed. While Asian economies are negatively influenced by an ongoing slowdown in China, the CEE region profits from EMU economic recovery. On the other hand, commodity-exporting emerging economies are set to contract further, given to the broad-based commodity oversupply contributing to depreciation in local currencies, an increase in inflation and hence restrictive monetary policies in many cases. Low energy prices and a still negative output gap will continue to keep underlying inflation low in developed economies.

Regarding central bank policy, we expect ongoing strong support from major central banks, including the ECB, the Bank of Japan and the People’s Bank of China. In case of the Fed, given the accelerated deterioration in the US economy, the recently announced gradual normalization of monetary policy is increasingly uncertain.


63

INVESTMENT MANAGER’S REPORT for the financial year ended 31 December 2015 Generali CEE Dynamic Balanced Fund (continued)

There are a number of risks. Apart from uncertain global economic development, the major risk relates to the Fed. While it is likely to proceed extremely carefully in normalizing its key rate, there remains a clear risk that markets will overreact. In this case, US bonds and EM assets seem likely to suffer most. There is also a greater risk that European integration will face more severe setbacks, given the UK’s forthcoming referendum on EU membership, political uncertainty in the periphery and ongoing migrant issue risks eroding political cohesion over the medium term.

The challenges for bond investors remain substantial. Core yields on both sides of the Atlantic are likely to remain in a narrow trading range in 2016 as concerns about global growth and an accommodative monetary policy stance persist. With yields on government bonds and IG credit already depressed, the only way to achieve an attractive total return is to invest in non-investment grade credits. Unfortunately, there are a number of reasons to remain bearish for credit for 2016. Firstly, concerns about the global economy are unlikely to vanish. Secondly, increasing volatility on equity markets generally widens credit spreads. Thirdly, Moody's forecast that the global speculative-grade default rate will continue to rise to 3.9% by the end of 2016, driven by the commodity sectors. In this environment the investment strategy will be based mainly on a selection of fundamentally strong and liquid credit names. Similar to past years we are also going profit from high carry of non-investment grade credits, where we will offset the higher fundamental risk by shorter duration. Moreover, we have already implemented and are going to continue with a more active tactical strategy, i.e. we will alter the Fund's composition and average duration depending on short-term market influences.

We see upside potential for equities in the euro area, underpinned by higher earnings, a weaker euro, decent valuations and dividend yield of around 3%. For the US, however, the equity cycle appears more mature, with already decreasing earnings and the normalization of monetary policy creating some headwinds to valuations. We continue to be cautious on the EM but at some time in 2016 there could be opportunities to buy as we think they are experiencing their greatest capitulation phase. The asset allocation, parameters and composition of the equity part will be adjusted in order to profit from the development of individual markets. In terms of risk/return profile we will keep a diversified and balanced portfolio.


64

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Dynamic Balanced Fund Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets Listed securities : equities BELGIUM Anheuser-Busch InBev SA/NV 710 EUR 54,673 81,224 1.33

54,673 81,224 1.33

CANADA Thomson Reuters Corp 2,900 USD 102,563 101,045 1.66

102,563 101,045 1.66

FRANCE LVMH Moet Hennessy Louis Vuitton SE 700 EUR 92,334 101,430 1.67

92,334 101,430 1.67

GERMANY Allianz SE 470 EUR 62,294 76,869 1.26Bayerische Motoren Werke AG 1,250 EUR 115,272 122,038 2.00HUGO BOSS AG 1,100 EUR 114,496 84,260 1.38Porsche Automobil Holding SE 2,520 EUR 166,152 126,025 2.07Siemens AG 1,200 EUR 115,591 107,856 1.77

573,805 517,048 8.48

GREAT BRITAIN BP PLC 2,000 USD 69,585 57,553 0.95

69,585 57,553 0.95

INDIA Tata Motors Ltd 4,000 USD 144,576 108,515 1.78

144,576 108,515 1.78

JAPAN Toyota Motor Corp 820 USD 78,814 92,877 1.52

78,814 92,877 1.52


77,332 78,284 1.29


109,261 118,422 1.94


65

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Dynamic Balanced Fund (continued) Acquisition cost Fair Value % of NetDescription Quantity Currency EUR EUR Assets UNITED STATES OF AMERICA 3M Co 340 USD 46,836 47,149 0.77Apple Inc 1,150 USD 89,224 111,432 1.83AT&T Inc 3,600 USD 96,478 114,035 1.87Boeing Co 830 USD 84,363 110,476 1.81Coca-Cola Co 2,000 USD 66,165 79,094 1.30eBay Inc 3,450 USD 68,855 87,274 1.43Exxon Mobil Corp 950 USD 70,408 68,169 1.12FedEx Corp 800 USD 121,816 109,723 1.80Goldman Sachs Group Inc 700 USD 101,035 116,138 1.92Harley-Davidson Inc 2,230 USD 113,533 93,178 1.53Intel Corp 1,000 USD 31,982 31,713 0.52Johnson & Johnson 760 USD 53,880 71,865 1.18MasterCard Inc 630 USD 37,269 56,464 0.93Microsoft Corp 1,400 USD 47,499 71,501 1.17NIKE Inc 1,400 USD 37,644 80,549 1.32Oracle Corp 3,170 USD 102,087 106,600 1.75PayPal Holdings Inc 1,450 USD 33,364 48,320 0.79Procter & Gamble Co 1,520 USD 99,826 111,114 1.82Wal-Mart Stores Inc 1,500 USD 81,457 84,645 1.39Walt Disney Co 600 USD 58,969 58,039 0.95Wells Fargo & Co 2,550 USD 104,261 127,606 2.10

1,546,951 1,785,084 29.30


Listed securities : bonds AUSTRIA JBS Investments GmbH 7.75% 28/10/2020 200,000 USD 183,524 177,667 2.92

183,524 177,667 2.92

CROATIA Croatia Government International Bond 5.875% 09/07/2018 200,000 EUR 219,772 217,959 3.58

219,772 217,959 3.58

GREAT BRITAIN International Personal Finance PLC 5.75% 07/04/2021 EMTN 100,000 EUR 101,730 92,600 1.52

101,730 92,600 1.52

IRELAND Alfa Bank AO Via Alfa Bond Issuance PLC 7.875% 25/09/2017 100,000 USD 94,069 96,675 1.59Novolipetsk Steel via Steel Funding Ltd 4.45% 19/02/2018 200,000 USD 189,057 182,456 3.00

283,126 279,131 4.59


66

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Dynamic Balanced Fund (continued) Acquisition cost Fair Value % of Net Description Quantity Currency EUR EUR Assets

KAZAKHSTAN Development Bank of Kazakhstan JSC 4.125% 10/12/2022 200,000 USD 159,293 162,814 2.67 Intergas Finance BV 6.375% 14/05/2017 200,000 USD 180,692 188,499 3.10 KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 200,000 EUR 189,625 188,207 3.09 KazMunayGas National Co JSC 9.125% 02/07/2018 EMTN 100,000 USD 99,652 101,580 1.67

629,262 641,100 10.53

NETHERLANDS Halyk Savings Bank of Kazakhstan JSC 7.25% 03/05/2017 100,000 USD 78,162 95,111 1.56 Petrobras Global Finance BV 2% 20/05/2016 100,000 USD 88,689 90,905 1.49 Petrobras Global Finance BV 2% 20/05/2016 100,000 USD 78,270 90,905 1.49

245,121 276,921 4.54

TURKEY Export Credit Bank of Turkey 5.875% 24/04/2019 200,000 USD 189,497 190,448 3.13 Turkiye Garanti Bankasi AS 4% 13/09/2017 200,000 USD 184,489 185,983 3.05

373,986 376,431 6.18


Listed securities : exchange traded funds IRELAND SOURCE MSCI EMERGING MARKETS UCITS ETF 13,150 USD 423,686 387,067 6.36

423,686 387,067 6.36


Bond interest accrued 32,860 0.54 Financial assets at fair value through profit or lo ss 5,310,101 5,523,218 90.68


67

SCHEDULE OF INVESTMENTS as at 31 December 2015 Generali CEE Dynamic Balanced Fund (continued) Fair Value % of NetDescription EUR Assets Financial Derivative Instruments Open Forward Foreign Currency Contracts Unrealised Appreciation/ % of NetMaturity Counterparty Currency Purchased Currency S old (Depreciation) Assets04-Jan-16 RBC IS Bank Luxembourg EUR - CZK 5 - -04-Jan-16 RBC IS Bank Luxembourg CZK 615 EUR 23 - -04-Jan-16 RBC IS Bank Luxembourg EUR 7,730 CZK 209,091 (7) -04-Jan-16 RBC IS Bank Luxembourg CZK 57,167 EUR 2,117 (1) -04-Jan-16 RBC IS Bank Luxembourg EUR 35 CZK 957 - -05-Jan-16 RBC IS Bank Luxembourg CZK 1 EUR - - -05-Jan-16 RBC IS Bank Luxembourg CZK 46 EUR 2 - -05-Jan-16 RBC IS Bank Luxembourg CZK 1 EUR - - -05-Jan-16 RBC IS Bank Luxembourg EUR 19,309 CZK 521,857 (3) -05-Jan-16 RBC IS Bank Luxembourg CZK 31,291 EUR 1,159 (1) -05-Jan-16 RBC IS Bank Luxembourg EUR 99 CZK 2,676 - -19-Jan-16 RBC IS Bank Luxembourg EUR 4,116,747 USD 4,400,000 68,135 1.1219-Jan-16 RBC IS Bank Luxembourg EUR 234,736 USD 250,000 4,701 0.0829-Jan-16 RBC IS Bank Luxembourg PLN 110,200 EUR 25,950 (298) -29-Jan-16 RBC IS Bank Luxembourg CZK 87,930,153 EUR 3,261,389 (8,228) (0.14)29-Jan-16 RBC IS Bank Luxembourg CZK 1,654,474 EUR 61,288 (77) -29-Jan-16 RBC IS Bank Luxembourg PLN 2,269 EUR 534 (6) -29-Jan-16 RBC IS Bank Luxembourg CZK 493,243 EUR 18,261 (13) -






68

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2 015

Generali CEECash & Bond

Fund


Fund

Generali CEECorporate Bonds

Fund


Fund 31 December 2015 31 December 2014 31 December 2015 31 December 2014

Note EUR EUR EUR EUR Assets

Financial assets at fair value through profit or loss 3 19,990,449 12,704,368 20,791,446 12,813,916

Derivative financial assets 2 117,950 4,359 294,669 18,286

Interest and dividends receivable, net 13 - 4 -

Amount receivable from subscriptions 81,647 446,962 84,880 451,949

Amount receivable on sale of securities - - - -

Other receivables 1,454 9,449 1,361 4,226

Cash and cash equivalents 10 1,290,079 711,740 1,434,030 822,194

Total assets 21,481,592 13,876,878 22,606,390 14,110,571

Liabilities

Derivative financial liabilities 2 34,551 209,144 65,484 254,586

Amount payable on redemptions 28,299 40,542 98,953 51,844

Amount payable on purchase of securities - 206,294 - -

Investment management fees payable 6 - - 16,629 10,511

Administration and transfer agency fees payable 6 10,313 9,543 12,015 11,953

Custodian fees payable 6 676 535 691 581

Audit fees payable 6 8,173 - 7,550 -

Directors’ fees payable 6 4,137 832 3,929 826

Distribution fees payable 6 11,269 11,870 67,118 42,262

Other expenses payable 7 23,306 14,982 23,395 15,384 Liabilities (excluding net assets attributable to holders of redeemable shares) 120,724 493,742 295,764 387,947 Net assets attributable to holders of redeemable participating shares 21,360,868 13,383,136 22,310,626 13,722,624 Net Asset Value 21,360,868 13,383,136 22,310,626 13,722,624 Represented by: Net assets attributable to holders of redeemable participating shares for financial statement purposes 21,360,868 13,383,136 22,310,626 13,722,624 Adjustment for fair value 15 - 33,398 - 80,364 Net assets attributable to holders of redeemable participating shares 15 21,360,868 13,416,534 22,310,626 13,802,988 Class ‘A’ EUR Shares In Issue 917,886.06 980,586.70 493,992.80 621,679.07 Net Asset Value Per Share EUR 11.17 EUR 11.02 EUR 12.93 EUR 12.14 Class ‘B’ EUR Shares In Issue - - 51,748.58 78,860.45 Net Asset Value Per Share - - EUR 10.86 EUR 10.19 Class ‘A’ CZK Shares In Issue 1,068,287.83 201,728.89 1,161,106.00 369,150.81 Net Asset Value Per Share CZK 262.65 CZK 261.36 CZK 272.92 CZK 258.58 Class ‘B’ CZK Shares In Issue - - 106,277.95 124,544.97 Net Asset Value Per Share - - CZK 261.84 CZK 247.50 Class ‘A’ PLN Shares In Issue 61,215.42 61,636.86 200,088.97 74,070.77 Net Asset Value Per Share PLN 50.83 PLN 49.39 PLN 55.34 PLN 51.23 Class ‘B’ PLN Shares In Issue - - 1,544.13 1,407.26 Net Asset Value Per Share - - PLN 50.75 PLN 47.02 The accompanying notes form an integral part of the financial statements.


69

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2 015 (continued)

Generali CEEGlobal Brands

Fund


Fund

Generali CEE New Economies

Fund


Fund

31 December 2015 31 December 2014 31 December 2015 31 December 2014

Note EUR EUR EUR EUR

Assets


Derivative financial assets 2 108,406 1 157,849 16,082

Interest and dividends receivable, net 6,732 14,887 14,157 7,023


Amount receivable on sale of securities - - - -


Cash and cash equivalents 10 554,661 1,379,278 486,850 712,579

Total assets 9,677,262 17,785,771 12,834,449 15,543,420

Liabilities


Amount payable on redemptions 2,933 482 1,009 386

Amount payable on purchase of securities - - - -

Investment management fees payable 6 8,457 14,830 16,672 19,265






Other expenses payable 7 20,381 14,160 21,008 14,256 Liabilities (excluding net assets attributable to holders of redeemable shares) 100,584 343,331 128,341 522,286 Net assets attributable to holders of redeemable participating shares 9,576,678 17,442,440 12,706,108 15,021,134

Net Asset Value 9,576,678 17,442,440 12,706,108 15,021,134 Represented by: Net assets attributable to holders of redeemable participating shares for financial statement purposes 9,576,678 17,442,440 12,706,108 15,021,134 Adjustment for fair value 15 - 4,189 - 17,734 Net assets attributable to holders of redeemable participating shares 15 9,576,678 17,446,629 12,706,108 15,038,868 Class ‘A’ EUR Shares In Issue 545,487.68 1,163,343.90 1,365,556.63 1,464,098.81 Net Asset Value Per Share EUR 15.37 EUR 14.81 EUR 8.41 EUR 10.20 Class ‘A’ CZK Shares In Issue 1,473.85 137.90 - - Net Asset Value Per Share CZK 308.59 CZK 298.22 - - Class ‘A’ PLN Shares In Issue 78,249.90 15,435.74 142,122.47 9,813.72 Net Asset Value Per Share PLN 64.35 PLN 61.42 PLN 36.81 PLN 44.31 The accompanying notes form an integral part of the financial statements.


70


Generali CEE Oil Industry & Energy

Production Fund


Production Fund

Generali CEECommodity

Fund


Fund



Assets


Derivative financial assets 2 73,153 1,410 3 4,798

Interest and dividends receivable, net 9,757 3,700 - -


Amount receivable on sale of securities - 47,782 - -


Cash and cash equivalents 10 187,392 308,922 287,927 638,070

Total assets 7,044,137 9,855,037 6,761,361 7,550,268

Liabilities


Amount payable on redemptions 1,434 525 411 73








Other expenses payable 7 19,759 14,010 19,571 14,207 Liabilities (excluding net assets attributable to holders of redeemable shares) 75,965 273,692 96,084 277,265

Net assets attributable to holders of redeemable participating shares 6,968,172 9,581,345 6,665,277 7,273,003

Net Asset Value 6,968,172 9,581,345 6,665,277 7,273,003 Represented by: Net assets attributable to holders of redeemable participating shares for financial statement purposes 6,968,172 9,581,345 6,665,277 7,273,003 Adjustment for fair value 15 - 1,671 - 34,845 Net assets attributable to holders of redeemable participating shares 15 6,968,172 9,583,016 6,665,277 7,307,848 Class ‘A’ EUR Shares In Issue 821,891.71 962,269.86 785,437.05 825,951.98 Net Asset Value Per Share EUR 8.19 EUR 9.88 EUR 5.40 EUR 7.24 Class ‘A’ CZK Shares In Issue - - 286,818.16 245,087.10 Net Asset Value Per Share - - CZK 103.22 CZK 139.41 Class ‘A’ PLN Shares In Issue 26,590.70 6,826.75 260,482.91 13,691.52 Net Asset Value Per Share PLN 38.26 PLN 45.73 PLN 21.88 PLN 29.18 The accompanying notes form an integral part of the financial statements.


71


Generali CEEEmerging Europe

Fund

Generali CEE Emerging Europe

Fund*


Bond Fund


Bond Fund* 31 December 201 5 31 December 2014 31 December 201 5 31 December 2014 Note EUR EUR EUR EUR

Assets

Financial assets at fair value through profit or loss 3 28,785,831 22,306,334 30,543,634 28,559,435 Derivative financial assets 2 - - 145,746 -Interest and dividends receivable, net 17,197 53,152 48 13 Amount receivable from subscriptions 168 2,574 18 2,222 Amount receivable on sale of securities - - - -Other receivables 2,771 2,379 2,181 5,896 Cash and cash equivalents 10 1,923,185 4,692,906 868,006 892,746

Total assets 30,729,152 27,057,345 31,559,633 29,460,312

Liabilities

Derivative financial liabilities 2 11,304 11,770 956 77,618

Amount payable on redemptions - - - -




Custodian fees payable 6 988 5,803 997 3,463


Directors’ fees payable 6 5,878 825 5,878 1,250

Distribution fees payable* 6 33,276 15,771 8,736 8,269

Other expenses payable* 7 19,210 8,891 14,017 3,886 Liabilities (excluding net assets attributable to holders of redeemable shares) 138,083 92,540 82,132 132,489


Net Asset Value 30,591,069 26,964,805 31,477,501 29,327,823 Represented by: Net assets attributable to holders of redeemable participating shares for financial statement purposes 30,591,069 26,964,805 31,477,501 29,327,823 Adjustment for fair value 15 - 186,734 - 104,970 Net assets attributable to holders of redeemable participating shares 15 30,591,069 27,151,539 31,477,501 29,432,793 Class ‘A’ EUR Shares In Issue 379,564.88 33,800.67 2,225.95 2,709.82 G1Net Asset Value Per Share EUR 9.39 EUR 9.68 EUR 9.82 EUR 9.29 Class ‘A’ CZK Shares In Issue 237,239.54 234,619.45 2,819.56 2,509.40 Net Asset Value Per Share CZK 223.47 CZK 232.25 CZK 249.41 CZK 237.52 Class ‘I’ EUR Shares 260,099.39 260,099.39 - -Net Asset Value Per Share EUR 8.65 EUR 8.76 - - Class ‘A’ PLN Shares In Issue 56,754.31 441.09 12.42 -Net Asset Value Per Share PLN 41.27 PLN 42.21 PLN 44.10 - Class ‘Y’ EUR Shares In Issue 2,353,287.52 2,353,287.51 3,093,240.45 3,093,240.45 Net Asset Value Per Share EUR 9.46 EUR 9.59 EUR 10.16 EUR 9.50 *The 2014 figures contained in the financial statements have been reclassified to conform to current year presentation. These reclassifications do not have any effect on previously reported Net Asset Values. The accompanying notes form an integral part of the financial statements.


72


Generali CEE

Balanced Fund* Generali CEE

Balanced Fund*

Generali CEEDynamic

Balanced Fund *

Generali CEEDynamic

Balanced Fund* 31 December 2015 31 December 2014 31 December 201 5 31 December 2014 Note EUR EUR EUR EUR

Assets

Financial assets at fair value through profit or loss 3 9,537,591 3,544,472 5,523,218 2,962,535 Derivative financial assets 2 134,913 17 72,836 6 Interest and dividends receivable, net 592 419 274 113 Amount receivable from subscriptions 60,274 239,666 27,413 88,983 Amount receivable on sale of securities - - - -Other receivables 4,623 7,295 4,625 7,295 Cash and cash equivalents 10 895,068 238,313 515,065 173,753

Total assets 10,633,061 4,030,182 6,143,431 3,232,685

Liabilities


Amount payable on redemptions 4,202 - 3,318 -






Directors’ fees payable 6 1,834 1,879 1,059 1,879


Other expenses payable 7 4,396 2,718 3,461 2,717 Liabilities (excluding net assets attributable to holders of redeemable shares) 85,583 81,189 52,984 72,489


Net Asset Value 10,547,478 3,948,993 6,090,447 3,160,196 Represented by: Net assets attributable to holders of redeemable participating shares for financial statement purposes 10,547,478 3,948,993 6,090,447 3,160,196 Adjustment for fair value 15 - 10,802 - 5,938 Net assets attributable to holders of redeemable participating shares 15 10,547,478 3,959,795 6,090,447 3,166,134 Class ‘A’ EUR Shares In Issue 267,887.02 268,766.51 277,645.85 252,507.62 Net Asset Value Per Share EUR 9.92 EUR 9.98 EUR 9.93 EUR 10.20 Class ‘A’ CZK Shares In Issue 785,346.88 126,157.40 331,189.63 56,572.80 Net Asset Value Per Share CZK 270.22 CZK 274.10 CZK 269.95 CZK 279.92 Class ‘A’ PLN Shares In Issue 3,791.21 3,073.93 2,606.81 1,860.54 Net Asset Value Per Share PLN 42.98 PLN 42.72 PLN 42.77 PLN 43.45 *Launched on 3 January 2014. The accompanying notes form an integral part of the financial statements.


74

STATEMENT OF COMPREHENSIVE INCOME for the financial year ended 31 December 2015

Generali CEE Cash & Bond

Fund


Fund

Generali CEE Corporate Bonds

Fund


Fund



Income

Dividends - - -

Bank interest 40 1 14 2

Other income - - - 384Net gain/(loss) on financial instruments at fair value through profit or loss 12 592,943 130,059 1,858,025 (537,032)

Total net income/(loss) 592,983 130,060 1,858,039 (536,646)

Expenses

Investment management fees 6 - - 60,201 42,510

Administration and transfer agency fees 6 55,379 47,201 59,958 56,232

Distribution fees 6 43,629 24,140 242,598 171,039

Director fees and expenses 6 15,056 9,665 13,889 9,659

Custodian fees 6 4,102 2,254 4,758 2,951

Audit fees 6 16,061 3,104 14,170 3,108

Transaction costs - 15 - -

Other expenses 7 38,945 22,418 35,684 22,824

Total operating expenses 173,172 108,797 431,258 308,323

Profit/(loss) before tax 419,811 21,263 1,426,781 (844,969)

Withholding tax on dividends and interest 309 - - - Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations after tax 419,502 21,263 1,426,781 (844,969) Dividends to holders of redeemable participating units - - - 92,777 Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 419,502 21,263 1,426,781 (937,746)

Adjustment for fair value 15 - 33,398 - 80,364 For the financial year ended 31 December 2015, there are no other gains or losses other than those included in the Statement of Comprehensive Income. All income arises from continuing operations. The accompanying notes form an integral part of the financial statements.


75

STATEMENT OF COMPREHENSIVE INCOME for the financial year ended 31 December 2015 (continued)

Generali CEE Global Brands

Fund


Fund


Fund




Income

Dividends 216,862 362,739 343,900 400,458

Bank interest 3 - - 4

Other income - 78 - 38 Net gain/(loss) on financial instruments at fair value through profit or loss 12 672,018 942,087 (2,626,859) 575,049

Total net income/(loss) 888,883 1,304,904 (2,282,959) 975,549

Expenses

Investment management fees 6 35,386 58,403 72,867 75,154




Custodian fees 6 5,685 2,752 3,191 2,130

Audit fees 6 7,662 3,104 11,083 3,108

Transaction costs 5,398 619 1,490 80

Other expenses 7 27,317 21,650 31,475 21,818


Profit/(loss) before tax 587,242 868,414 (2,710,898) 553,648

Withholding tax on dividends and interest 47,216 83,955 49,533 48,783 Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations after tax 540,026 784,459 (2,760,431) 504,865 Dividends to holders of redeemable participating units - - - - Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 540,026 784,459 (2,760,431) 504,865



76



Production Fund


Production Fund

Generali CEE Commodity

Fund




Income

Dividends 280,122 342,733 - -

Bank interest - - 14 2

Other income - 1,326 - 597Net loss on financial instruments at fair value through profit or loss 12 (1,464,825) (462,476) (2,075,049) (1,261,313)

Total net (loss)/income (1,184,703) (118,417) (2,075,035) (1,260,714)

Expenses





Custodian fees 6 2,797 1,597 2,569 1,888

Audit fees 6 6,714 3,104 6,595 3,104


Other expenses 7 25,840 21,477 25,958 21,489


Loss before tax (1,445,452) (440,711) (2,338,797) (1,543,814)

Withholding tax on dividends and interest 56,945 62,979 - - Decrease in net assets attributable to holders of redeemable participating shares from operations after tax (1,502,397) (503,690) (2,338,797) (1,543,814) Dividends to holders of redeemable participating units - - - - Decrease in net assets attributable to holders of redeemable participating shares from operations (1,502,397) (503,690) (2,338,797) (1,543,814)



77


Generali CEEEmerging

Europe Fund

Generali CEE Emerging

Europe Fund*


Europe Bond Fund

Generali CEEEmerging

Europe Bond Fund*



Income

Dividends 857,347 905,269 - -

Bank interest 4,252 2,795 1,661 38

Other income - 82 - 31Net (loss)/gain on financial instruments at fair value through profit or loss 12 (929,154) (1,057,207) 2,452,204 (1,213,661)

Total net (loss)/income (67,555) (149,061) 2,453,865 (1,213,592)

Expenses



Distribution fees* 6 116,262 64,587 31,939 31,673


Custodian fees 6 30,586 37,697 17,871 19,198

Audit fees 6 21,968 3,115 21,817 5,159

Transaction costs 18,887 8,809 - -

Other expenses* 7 47,676 27,660 50,725 26,204


(Loss)/Profit before tax (546,014) (478,717) 2,151,490 (1,433,509)

Withholding tax on dividends and interest 87,458 80,935 - -

(Decrease)/increase in net assets attributable to holders of redeemable participating shares from operations after tax (633,472) (559,652) 2,151,490 (1,433,509)

Dividends to holders of redeemable participating units - - - -

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations (633,472) (559,652) 2,151,490 (1,433,509)

Adjustment for fair value 15 - 186,734 - 104,970 *The 2014 figures contained in the financial statements have been reclassified to conform to current year presentation. These reclassifications do not have any effect on previously reported Net Asset Values. For the financial year ended 31 December 2015, there are no other gains or losses other than those included in the Statement of Comprehensive Income. All income arises from continuing operations. The accompanying notes form an integral part of the financial statements.


78


Generali CEE

Balanced Fund*Generali CEE

Balanced Fund*

Generali CEEDynamic

Balanced Fund*

Generali CEEDynamic

Balanced Fund *



Income

Dividends 56,963 15,393 56,660 24,786

Bank interest 6 1 2 1

Other income - 77 - -Net gain/(loss) on financial instruments at fair value through profit or loss 12 191,852 84,638 (31,070) 160,229

Total net income 248,821 100,109 25,592 185,016

Expenses





Custodian fees 6 4,755 1,429 3,121 1,099

Audit fees 6 7,131 5,951 4,745 5,951


Other expenses 7 19,388 17,767 16,436 16,777


Profit/(loss) before tax 29,295 (17,880) (128,792) 64,122

Withholding tax on dividends and interest 13,602 4,206 14,877 6,755

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations after tax 15,693 (22,086) (143,669) 57,367


Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 15,693 (22,086) (143,669) 57,367

Adjustment for fair value 15 - 10,802 - 5,938 *Launched on 3 January 2014. For the financial year ended 31 December 2015, there are no other gains or losses other than those included in the Statement of Comprehensive Income. All income arises from continuing operations. The accompanying notes form an integral part of the financial statements.


79


Total Total

31 December 201 5 31 December 2014

Note EUR EUR

Income

Dividends 1,811,854 2,051,378

Bank interest 5,992 2,844

Other income - 2,613Net loss on financial instruments at fair value through profit or loss 12 (1,359,915) (2,639,627)

Total net income/(loss) 457,931 (582,792)

Expenses

Investment management fees 6 552,576 524,637

Administration and transfer agency fees 6 406,597 405,304

Distribution fees 6 1,391,797 1,300,392

Director fees and expenses 6 112,633 97,138

Custodian fees 6 79,435 72,995

Audit fees 6 117,946 38,808

Transaction costs 32,837 10,003

Other expenses 7 319,444 220,084

Total operating expenses 3,013,265 2,669,361

Loss before tax (2,555,334) (3,252,153)

Withholding tax on dividends and interest 269,940 287,613

Decrease in net assets attributable to holders of redeemable participating shares from operations after tax (2,825,274) (3,539,766)

Dividends to holders of redeemable participating units - 92,777

Decrease in net assets attributable to holders of redeemable participating shares from operations (2,825,274) (3,632,543)

For the financial year ended 31 December 2015, there are no other gains or losses other than those included in the Statement of Comprehensive Income. All income arises from continuing operations. The accompanying notes form an integral part of the financial statements.


80

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES for the financial y ear ended 31 December 2015


Fund


Fund


Fund



EUR EUR EUR EUR

Net assets attributable to holders of redeemable participating shares at the beginning of the financ ial year 13,383,136 10,505,670 13,722,624 13,459,240

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 419,502 21,263 1,426,781 (937,746)

Capital transactions

Proceeds from issuance of shares 20,378,475 8,530,096 13,194,294 10,105,904

Payments on redemption of shares (12,820,245) (5,673,893) (6,033,073) (8,904,774)

Net assets attributable to holders of redeemable participating shares at the end of the financial ye ar 21,360,868 13,383,136 22,310,626 13,722,624


Fund


Fund


Fund


Fund

Number of

Shares Number of

Shares Number of

Shares Number of

Shares

Shares in issue at beginning of the financial year 1,243,952.45 975,579.69 1,269,713.33 1,162,921.93

Shares issued during the financial year 1,964,176.98 794,383.72 1,275,316.08 912,359.48

Shares redeemed during the financial year (1,160,740.12) (526,010.96) (530,270.98) (805,568.08)

Shares in issue at the end of the financial year 2, 047,389.31 1,243,952.45 2,014,758.43 1,269,713.33 The accompanying notes form an integral part of the financial statements.


81

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES for the financial y ear ended 31 December 2015 (continued)


Fund


Fund


Fund



EUR EUR EUR EUR


Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 540,026 784,459 (2,760,431) 504,865


Proceeds from issuance of shares 2,699,757 610,835 2,149,225 1,130,292

Payments on redemption of shares (11,105,545) (1,969,091) (1,703,820) (567,828)



Fund


Fund


Fund


Fund

Number of

Shares Number of

Shares Number of

Shares Number of

Shares

Shares in issue at beginning of financial year 1,178,917.54 1,275,089.65 1,473,912.53 1,418,669.62

Shares issued during the financial year 178,705.65 43,109.30 202,979.58 107,093.33

Shares redeemed during the financial year (732,411.76) (139,281.41) (169,213.01) (51,850.42)

Shares in issue at the end of the financial year 62 5,211.43 1,178,917.54 1,507,679.10 1,473,912.53 The accompanying notes form an integral part of the financial statements.


82



Production Fund


Production Fund


Fund



EUR EUR EUR EUR


Decrease in net assets attributable to holders of redeemable participating shares from operations (1,502,397) (503,690) (2,338,797) (1,543,814)


Proceeds from issuance of shares 782,286 593,045 8,975,667 2,849,017

Payments on redemption of shares (1,893,062) (858,165) (7,244,596) (2,608,557)



Production Fund


Production Fund


Fund


Fund

Number of

Shares Number of

Shares Number of

Shares Number of

Shares

Shares in issue at beginning of the financial year 969,096.61 990,808.72 1,084,730.60 1,053,775.56

Shares issued during the financial year 81,376.27 53,911.07 1,400,398.61 367,706.81

Shares redeemed during the financial year (201,990.47) (75,623.18) (1,152,391.09) (336,751.77)

Shares in issue at the end of the financial year 84 8,482.41 969,096.61 1,332,738.12 1,084,730.60 The accompanying notes form an integral part of the financial statements.


83



Fund


Fund


Europe Bond Fund


Bond Fund

31 December 2015 31 December 2014 31 December 201 5 31 December 2014

EUR EUR EUR EUR


(Decrease)/increase in net assets attributable to holders of redeemable participating shares from operations (633,472) (559,652) 2,151,490 (1,433,509)


Proceeds from issuance of shares 4,333,849 1,420,586 16,471 27,441

Payments on redemption of shares (74,113) (37,968) (18,283) (16,557)



Fund


Fund


Europe Bond Fund


Bond Fund*

Number of

Shares Number of

Shares Number of

Shares Number of

Shares

Shares in issue at beginning of the financial year 2,882,248.11 2,731,149.19 3,098,459.67 3,097,322.41



Shares in issue at the end of the financial year 3, 286,945.64 2,882,248.11 3,098,298.38 3,098,459.67 The accompanying notes form an integral part of the financial statements.


84


Generali CEE


Balanced Fund*

Generali CEE Dynamic

Balanced Fund*


Balanced Fund*


EUR EUR

Net assets attributable to holders of redeemable participating shares at the beginning of the financ ial year 3,948,993 - 3,160,196 -

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 15,693 (22,086) (143,669) 57,367


Proceeds from issuance of shares 7,090,972 4,496,239 3,287,898 3,620,137

Payments on redemption of shares (508,180) (525,160) (213,978) (517,308)


Shares in issue at beginning of the financial year 397,997.84 - 310,940.96 -



Shares in issue at the end of the financial year 1, 057,025.11 397,997.84 611,442.29 310,940.96 *Launched on 3 January 2014. The accompanying notes form an integral part of the financial statements.


85


Total Total

31 December 2015 31 December 2014

EUR EUR

Net assets attributable to holders of redeemable participating shares at the beginning of the financ ial year 139,825,499 131,753,751

(Decrease) in net assets attributable to holders of redeemable participating shares from operations (2,825,274) (3,632,543)


Proceeds from issuance of shares 62,908,894 33,383,592

Payments on redemption of shares (41,614,895) (21,679,301)

Net assets attributable to holders of redeemable participating shares at the end of the financial ye ar 158,294,224 139,825,499 The accompanying notes form an integral part of the financial statements.


86

STATEMENT OF CASH FLOWS for the financial year ende d 31 December 2015


Fund


Fund


Fund


Fund


EUR EUR EUR EUR

Cash flows from operating activities

Increase/(decrease) in net assets attributable to holders of redeemable participating shares/equity from operations after tax 419,502 21,263 1,426,781 (844,969)

Adjustments to reconcile profit attributable to holders of redeemable participating shares from operations to cash provided by operating activities

Interest income (40) (1) (14) (2)

Dividend income - - - -

Tax expense 309 - - -

Operating profit/(loss) before working capital chan ges 419,771 21,262 1,426,767 (844,971)

Changes in operating assets and liabilities

Net (increase) in investments in securities (7,574,265) (2,635,759) (8,443,015) (822,150)

Decrease in receivable from sale of securities - 974,317 - -

Decrease/(increase) in other receivables 7,995 (7,805) 2,865 (2,590) (Decrease) in amounts payable on purchase of securities (206,294) (898,771) - (242,176)

Increase in investment management fees payable - - 6,118 1,212

Increase in administration and transfer agency fees payable 770 4,443 62 4,004

Increase in custodian fees payable 141 164 110 87

Increase/(Decrease) in audit fees accrued 8,173 (7,808) 7,550 (7,808)

Increase/(decrease) in directors fees payable 3,305 (475) 3,103 (481)

(Decrease)/increase in distribution fees payable (601) 11,870 24,856 4,798

Increase in other expenses payable 8,324 4,614 8,011 5,018

Cash used by operating activities (7,332,681) (2,533 ,948) (6,963,573) (1,905,057)

Interest received 27 1 10 3

Dividend received (309) - - -

Net cash used by operating activities (7,332,963) (2 ,533,947) (6,963,563) (1,905,054)

Cash flows from financing activities

Proceeds from issuance of redeemable participating shares 20,743,790 8,176,177 13,561,363 9,922,823

Payments on redemption of redeemable participating shares (12,832,488) (5,639,135) (5,985,964) (8,858,936)

Dividends to holders of redeemable participating units - - - (92,777)

Net cash inflow from financing activities 7,911,302 2,537,042 7,575,399 971,110

Net increase/(decrease) in cash and cash equivalent s 578,339 3,095 611,836 (933,944)

Cash and cash equivalents at the start of the year 711,740 708,645 822,194 1,756,138 Cash and cash equivalents at the end of the year 1, 290,079 711,740 1,434,030 822,194 The accompanying notes form an integral part of the financial statements.


87

STATEMENT OF CASH FLOWS for the financial year ende d 31 December 2015 (continued)


Fund


Fund


Fund


Fund


EUR EUR EUR EUR


Increase/(decrease) in net assets attributable to holders of redeemable participating shares/equity from operations after tax 540,026 784,459 (2,760,431) 504,865

Adjustments to reconcile profit attributable to holders of redeemable participating shares from operations to cash provided by operating activities Interest income (3) - - (4)Dividend income (216,862) (362,739) (343,900) (400,458)Tax expense 47,216 83,955 49,533 48,783

Operating profit/(loss) before working capital chan ges 370,377 505,675 (3,054,798) 153,186

Changes in operating assets and liabilities Net (increase)/decrease in investments in securities 7,056,695 (56,514) 2,091,342 (1,832,443)Decrease in receivable from sale of securities - 1,055,623 - -Decrease/(increase) in other receivables 3,101 (2,720) 2,559 (2,590)(Decrease)/increase in investment management fees payable (6,373) (605) (2,593) 1,674 (Decrease)/increase in administration and transfer agency fees payable (5,093) 1,466 (2,537) 2,052 (Decrease) in custodian fees payable (352) (53) (87) (61)Increase/(decrease) in audit fees accrued 3,837 (7,808) 5,490 (7,808)Increase/(decrease) in directors fees payable 1,313 (476) 1,800 (481)(Decrease)/Increase in distribution fees payable (32,730) (3,117) (9,335) 6,026 Increase in other expenses payable 6,221 3,787 6,752 3,889

Cash generated/(used) by operating activities 7,396 ,996 1,495,258 (961,407) (1,676,556)

Interest received 2 - - 4 Dividend received 177,802 272,510 287,233 350,086

Net cash generated/(used) by operating activities 7 ,574,800 1,767,768 (674,174) (1,326,466)

Cash flows from financing activities Proceeds from issuance of redeemable participating shares 2,703,677 604,706 2,151,642 1,127,272 Payments on redemption of redeemable participating shares (11,103,094) (1,968,609) (1,703,197) (567,746)Dividends to holders of redeemable participating units - - - -

Net cash (outflow)/inflow from financing activities (8,399,417) (1,363,903) 448,445 559,526

Net (decrease)/increase in cash and cash equivalent s (824,617) 403,865 (225,729) (766,940)

Cash and cash equivalents at the start of the year 1,379,278 975,413 712,579 1,479,519

Cash and cash equivalents at the end of the year 55 4,661 1,379,278 486,850 712,579

The accompanying notes form an integral part of the financial statements.


88



Production Fund


Production Fund


Fund


Fund


EUR EUR EUR EUR


(Decrease) in net assets attributable to holders of redeemable participating shares/equity from operati ons after tax (1,502,397) (503,690) (2,338,797) (1,543,814)


Interest income - - (14) (2)

Dividend income (280,122) (342,733) - -

Tax expense 56,945 62,979 - -

Operating (loss)/profit before working capital chan ges (1,725,574) (783,444) (2,338,811) (1,543,816)


Net decrease in investments in securities 2,445,113 649,026 258,329 896,247

Decrease/(increase) in receivable from sale of securities 47,782 (47,782) - 274,155

Decrease/(increase) in other receivables 2,830 (2,596) 3,187 (2,809)

(Decrease) in investment management fees payable (3,137) (521) (1,066) (836)(Decrease)/increase in administration and transfer agency fees payable (3,691) 2,310 (3,214) 2,467

(Decrease) in custodian fees payable (116) (68) (281) 156

Increase/(decrease) in audit fees accrued 3,152 (7,808) 2,990 (7,808)

Increase/(decrease) in directors fees payable 590 (476) 390 (476)

(Decrease) in distribution fees payable (11,295) (1,876) (2,353) (2,785)

Increase in other expenses payable 5,749 3,644 5,364 3,841

Cash generated/(used) by operating activities 761,4 03 (189,591) (2,075,465) (381,664)

Interest received - - 14 2

Dividend received 217,120 279,061 - -

Net cash generated/(used) by operating activities 9 78,523 89,470 (2,075,451) (381,662)


Proceeds from issuance of redeemable participating shares 792,100 585,076 8,969,566 2,892,837

Payments on redemption of redeemable participating shares (1,892,153) (864,133) (7,244,258) (2,614,380)


Net cash (outflow)/inflow from financing activities (1,100,053) (279,057) 1,725,308 278,457

Net (decrease) in cash and cash equivalents (121,53 0) (189,587) (350,143) (103,205)

Cash and cash equivalents at the start of the year 308,922 498,509 638,070 741,275

Cash and cash equivalents at the end of the year 18 7,392 308,922 287,927 638,070



89



Europe Fund


Europe Fund


Europe Bond Fund


Europe Bond Fund


EUR EUR EUR EUR


(Decrease)/increase in net assets attributable to holders of redeemable participating shares/equity from operations after tax (633,472) (559,652) 2,151,490 (1,433,509)


Interest income (4,252) (2,795) (1,661) (38)

Dividend income (857,347) (905,269) - -

Tax expense 87,458 80,935 - -

Operating (loss)/profit before working capital chan ges (1,407,613) (1,386,781) 2,149,829 (1,433,547)


Net (increase)/decrease in investments in securities (6,479,963) 2,402,889 (2,206,607) 840,890

Decrease in receivable from sale of securities - 382,244 - 784,964

(Increase)/decrease in other receivables (392) (302) 3,715 3,001

(Decrease) in amounts payable on purchase of securities - - - (783,307)

Increase in investment management fees payable 4,593 5,312 630 981 Increase/(decrease) in administration and transfer agency fees payable 1,689 1,517 1,142 (556)

(Decrease)/increase in custodian fees payable (4,815) 4,860 (2,466) 2,270

Increase/(decrease) in audit fees accrued 11,665 (7,808) 11,773 (5,754)

Increase/(decrease) in directors fees payable 5,053 (482) 4,628 (476)

Increase/(decrease) in distribution fees payable 17,351 2,915 5 (68)

Increase/(decrease) in other expenses payable 10,473 3,354 10,593 (827)

Cash (used)/generated by operating activities (7,84 1,959) 1,407,718 (26,758) (592,429)

Interest received 4,261 2,753 1,626 25

Dividend received 805,835 771,248 - -

Net cash (used)/generated by operating activities ( 7,031,863) 2,181,719 (25,132) (592,404)


Proceeds from issuance of redeemable participating shares 4,336,255 1,419,778 18,675 25,545

Payments on redemption of redeemable participating shares (74,113) (38,087) (18,283) (18,039)


Net cash inflow from financing activities 4,262,142 1,381,691 392 7,506

Net (decrease)/increase in cash and cash equivalent s (2,769,721) 3,563,410 (24,740) (584,898)

Cash and cash equivalents at the start of the year 4,692,906 1,129,496 892,746 1,477,644

Cash and cash equivalents at the end of the year 1, 923,185 4,692,906 868,006 892,746 The accompanying notes form an integral part of the financial statements.


90


Generali CEE


Balanced Fund*


Balanced Fund*


Balanced Fund*


EUR EUR EUR EUR


Increase/(decrease) in net assets attributable to holders of redeemable participating shares/equity from operations after tax 15,693 (22,086) (143,669) 57,367


Interest income (6) (1) (2) (1)

Dividend income (56,963) (15,393) (56,660) (24,786)

Tax expense 13,602 4,206 14,877 6,755

Operating (loss)/profit before working capital chan ges (27,674) (33,274) (185,454) 39,335


Net (increase) in investments in securities (6,163,665) (3,488,762) (2,672,725) (2,914,695)

(Increase) in receivable from sale of securities - (7,295) - (7,295)

Decrease in other receivables 2,672 - 2,669 -

Increase in amounts payable on purchase of securities - 3,058 - 2,951

Increase in investment management fees payable 6,029 5,182 3,092 4,996 Increase/(decrease) in administration and transfer agency fees payable 775 394 (897) 296

(Decrease) in custodian fees payable (71) - (108) -

Increase in audit fees accrued 3,359 1,879 2,012 1,879

(Decrease)/increase in directors fees payable (45) 12,231 (820) 11,804

Increase in distribution fees payable 24,117 2,718 12,366 2,717

Increase in other expenses payable 1,678 - 745 -

Cash used by operating activities (6,152,825) (3,503,869) (2,839,120) (2,858,012)

Interest received 4 1 2 1

Dividend received 43,190 10,768 41,622 17,918

Net cash used by operating activities (6,109,631) (3,493,100) (2,797,496) (2,840,093)


Proceeds from issuance of redeemable participating shares 7,270,364 4,256,573 3,349,468 3,531,154

Payments on redemption of redeemable participating shares (503,978) (525,160) (210,660) (517,308)

Dividends to holders of redeemable participating units

Net cash inflow from financing activities 6,766,386 3,731,413 3,138,808 3,013,846

Net increase in cash and cash equivalents 656,755 238,313 341,312 173,753

Cash and cash equivalents at the start of the year 238,313 - 173,753 -

Cash and cash equivalents at the end of the year 895,068 238,313 515,065 173,753 *Launched on 3 January 2014. The accompanying notes form an integral part of the financial statements.


91



Total Total


EUR EUR


(Decrease) in net assets attributable to holders of redeemable participating shares/equity from operati ons after tax (2,825,274) (3,539,766)


Interest income (5,992) (2,844)

Dividend income (1,811,854) (2,051,378)

Tax expense 269,940 287,613

Operating loss before working capital changes (4,37 3,180) (5,306,375)


Net (increase) in investments in securities (21,688,761) (6,961,271)

Decrease in receivable from sale of securities 47,782 3,423,521

Decrease/(increase) in other receivables 31,202 (33,001)

(Decrease) in amounts payable on purchase of securities (206,294) (1,924,254)

Increase in investment management fees payable 7,293 13,226 (Decrease)/increase in administration and transfer agency fees payable (10,994) 27,881

Decrease/increase in custodian fees payable (8,045) 8,045

Increase/(decrease) in audit fees accrued 60,001 (60,410)

Increase/(decrease) in directors fees payable 19,317 (65)

Increase in distribution fees payable 22,381 41,798

Increase in other expenses payable 63,909 32,755

Cash used by operating activities (26,035,389) (10,7 38,150)

Interest received 5,946 2,790

Dividend received 1,572,493 1,701,591

Net cash used by operating activities (24,456,950) ( 9,033,769)


Proceeds from issuance of redeemable participating shares 63,896,900 32,541,941

Payments on redemption of redeemable participating shares (41,568,188) (21,611,533)

Dividends to holders of redeemable participating units - (92,777)

Net cash inflow from financing activities 22,328,71 2 10,837,631

Net (decrease)/increase in cash and cash equivalent s (2,128,238) 1,803,862

Cash and cash equivalents at the start of the year 10,570,501 8,766,639

Cash and cash equivalents at the end of the year 8, 442,263 10,570,501


92

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 1. Establishment and organisation

Generali Invest CEE Plc (the ‘’Company’’) is an open-ended umbrella investment company with variable capital and with segregated liability between Funds incorporated with limited liability in Ireland under the Companies Act 2014 with registration number 468417. The Company is established as an undertaking for collective investment in transferable securities pursuant to the UCITS Regulations. On 11 December 2014 the Company changed its name to Generali Invest CEE Plc, from Generali PPF Invest Plc. As at 31 December 2015, the Company comprises the following Funds (each a “Fund”, collectively the “Funds”):

Fund Launch Date

Generali CEE Cash & Bond Fund 3 February 2010

Generali CEE Corporate Bonds Fund 25 January 2010

Generali CEE Global Brands Fund 3 February 2010

Generali CEE New Economies Fund 3 February 2010

Generali CEE Oil Industry & Energy Production Fund 3 February 2010

Generali CEE Commodity Fund 3 February 2010

Generali CEE Emerging Europe Fund 17 June 2011

Generali CEE Emerging Europe Bond Fund 26 March 2013

Generali CEE Balanced Fund 3 January 2014

Generali CEE Dynamic Balanced Fund 3 January 2014 Each Fund has authorised the following classes of shares: Class A EUR, Class A HUF, Class A PLN, Class A RON and Class A CZK. Generali CEE Emerging Europe Fund has also authorised Class I EUR and Class Y EUR, Generali CEE Corporate Bonds Fund, Generali CEE Balanced Fund and Generali CEE Dynamic Balanced Fund have also authorised Class B EUR, Class B CZK and Class B PLN, Class B RON and Class B HUF and Generali CEE Emerging Europe Bond Fund has also authorised Class Y EUR. The base currency of each Fund is EUR (€). As at 31 December 2015 the following were in issue: Fund Name Class Name

Generali CEE Cash and Bond Fund A EUR, A CZK, A PLN

Generali CEE Corporate Bonds Fund A EUR, B EUR, A CZK, B CZK, A PLN, B PLN

Generali CEE Global Brands Fund A EUR, A CZK, A PLN

Generali CEE New Economies Fund A EUR, A PLN

Generali CEE Oil and Energy Production Fund A EUR, A PLN

Generali CEE Commodity Fund A EUR, A CZK, A PLN

Generali CEE Emerging Europe Fund A EUR, A CZK, A PLN, I EUR, Y EUR

Generali CEE Emerging Europe Bond Fund A EUR, A CZK, A PLN, Y EUR

Generali CEE Balanced Fund A EUR, A CZK, A PLN

Generali CEE Dynamic Balanced Fund A EUR, A CZK, A PLN


93

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 2. Principal accounting policies

Accounting Standards These financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as adopted for use in the European Union and interpretations issued by the International Financial Reporting Interpretations Committee at the IASB. The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The accounting policies have been applied consistently by the Company and are consistent with those used in the previous period. The following is a summary of the principal accounting policies: Going concern The Company’s Board has made an assessment of the Company’s ability to continue as a going concern and is satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore, the Board is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. Financial instruments (i) Classification The Company classified its investment securities as financial assets and liabilities at fair value through profit or loss: held for trading, in accordance with IAS 39 – Financial Instruments: Recognition and Measurement (“IAS 39”). Financial assets and liabilities held for trading: these include equities, investment funds, exchange traded funds, forwards and fixed income that are acquired principally for the purpose of generating a profit from short term fluctuations in price. (ii) Initial Measurement Purchases and sales of financial instruments are accounted for at trade date. Financial instruments categorised at fair value through profit or loss are measured initially at cost, with transaction costs for such instruments being recognised directly in the Statement of Comprehensive Income. (iii) Subsequent Measurement Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in fair value recognised in the Statement of Comprehensive Income. Financial instruments are priced as follows: warrants, equities, bonds and investment funds are priced at the best exit price within the bid-ask spread that is most representative of fair value while futures and options are priced at settlement. (iv) Fair value measurement principles The fair value of financial instruments is based on their quoted market prices at the Statement of Financial Position date without any deduction for estimated future selling costs. Financial assets are priced in line with the IFRS 13 ‘Fair Value Measurement’ which allows the use of the best exit price within the bid-ask spread that is most representative of fair value rather than only using current bid prices for financial assets and asking prices for financial liabilities.


94

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 2. Principal accounting policies (continued)

Financial instruments (continued) (iv) Recognition The Company recognises financial assets and financial liabilities on the date it commits to purchase the instruments. From this date any gains and losses arising from changes in fair value of the assets or liabilities are recognised. (v) Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with IAS 39. The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires. Loans and receivables Loans and receivables are recognised initially at fair value plus transaction costs that are directly attributable to their acquisition or origination. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. Investment income Income received arising on fixed income securities and liquidity investments is recognised as a component of the net gains on financial assets and liabilities designated at fair value through profit or loss. Dividends are recorded on the ex-dividend date. Income is shown gross of any non-recoverable withholding taxes, which is disclosed separately in the Statement of Comprehensive Income, and net of any tax credits. Expenses All expenses are recognised in the Statement of Comprehensive Income on an accrual basis. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Net asset value per redeemable participating share The net asset value per share (“NAV”) is calculated by dividing the net assets of each share class by the number of shares outstanding in each class. Distributions Distributions to holders of redeemable participating shares are recorded in the Statement of Comprehensive Income and recorded as finance costs when authorised by the Board of Directors. Financial Derivative Instruments The fair value of forward foreign currency exchange contracts is calculated as the difference between the contracted rate and the current forward rate that would close out the contract as at the year end. For each relevant Fund, gains or losses on forward foreign currency exchange contracts are included, as appropriate, on the Statement of Financial Position and are shown in the Schedule of Investments of each relevant Fund. If traded in the over-the-counter market, instruments are stated by reference to prices obtained from dealers or counterparties. All derivatives are carried in assets when amounts are receivable by the Company and in liabilities when amounts are payable by the Company. Changes in the fair values of derivatives are included in the Statement of Comprehensive Income. During the financial year the contract is open, changes in the value of the contracts are recognised as unrealised gains or losses to reflect the market value of the contract at the last day of the valuation period.


95

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 2. Principal accounting policies (continued)

Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Functional and presentation currency Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (‘the functional currency’). The functional and presentation currency for the Company is EUR. Foreign currency translation Assets and liabilities denominated in currencies other than functional currency as stated above are translated into the said functional currency at the closing rates of exchange at each financial year end. Transactions during the year, including purchases and sales of securities, income and expenses are translated at the rate of exchange prevailing on the date of the transaction. Net gain/loss on financial assets and liabilities a t fair value through profit or loss Results arising from trading activities recognised in the Statement of Comprehensive Income include all gains and losses from changes in fair value of financial instruments. New Standards, amendments and interpretations issue d but not effective and not yet adopted A number of new standards, amendments to standards and interpretations in issue are not yet effective, and have not been applied in preparing these financial statements. None of these are currently expected to have a material effect on the financial statements of the Company except the following set out below: IFRS 9, ‘Financial instruments’, effective for annual periods beginning on or after 1 January 2018, specifies how an entity should classify and measure financial assets and liabilities, including some hybrid contracts. The standard improves and simplifies the approach for classification and measurement of financial assets compared with the requirements of IAS 39. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged. The standard applies a consistent approach to classifying financial assets and replaces the numerous categories of financial assets in IAS 39, each of which had its own classification criteria. IFRS 9 is not expected to have a significant impact on the Company’s measurement basis, financial position or performance, as it is expected that the Company will continue to classify its financial assets and financial liabilities (both long and short) as being at fair value through profit or loss.


96

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued)

3. Financial instruments at fair value through pr ofit or loss


Fund


Fund


Fund



Financial assets at fair value through profit or loss EUR EUR EUR EUR Bonds 19,990,449 12,704,368 20,791,446 12,813,916 Total financial assets at fair value through profit or loss 19,990,449 12,704,368 20,791,446 12,813,916


Fund


Fund


Fund



Financial assets at fair value through profit or loss EUR EUR EUR EUR Equities 8,818,317 16,380,022 11,966,147 14,642,989 Investment Funds - - 205,080 155,405 Bonds 184,584 - - - Total financial assets at fair value through profit or loss 9,002,901 16,380,022 12,171, 227 14,798,394


Production Fund


Production Fund


Fund



Financial assets at fair value through profit or loss EUR EUR EUR EUR Equities 6,770,269 9,477,013 - - Investment Funds - - 3,948,109 3,866,594 Warrants - - 2,514,343 3,032,741 Total financial assets at fair value through profit or loss 6,770,269 9,477,013 6,462,45 2 6,899,335

*Launched on 3 January 2014.

Generali CEE

Emerging Europe Generali CEE



Emerging Europe Fund Fund Bond Fund Bond Fund 31 December 2015 31 December 2014 31 December 2015 31 December 2014

Financial assets at fair value through profit or loss EUR EUR EUR EUR Equities 27,352,680 21,216,251 - - Investment Funds 1,433,151 1,090,083 - - Bonds - - 30,543,634 28,559,435 Total financial assets at fair value through profit or loss 28,785,831 22,306,334 30,543,634 28,559,435

Generali CEE

Balanced Fund Generali CEE

Balanced Fund*


Balanced Fund


Balanced Fund* 31 December 2015 31 December 2014 31 December 2015 31 December 2014

Financial assets at fair value through profit or loss EUR EUR EUR Equities 2,987,342 1,013,542 3,041,482 1,572,124 Investment Funds 635,791 298,727 387,067 271,999 Bonds 5,914,458 2,232,203 2,094,669 1,118,412 Total financial assets at fair value through profit or loss 9,537,591 3,544,472 5,523,218 2,962,535


97


4. Taxation

Under current law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains. However, Irish tax may arise on the happening of a "chargeable event". A chargeable event includes any distribution payments to shareholders, any encashment, redemption, cancellation or transfer of shares and the holding of shares at the end of each eight year period beginning with the acquisition of such shares. No Irish tax will arise on the Company in respect of chargeable events in respect of: (a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Company; and (b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations. Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.

5. Share capital and redeemable participating share s

The authorised share capital of the Company is 500,000,000,000 shares of no par value and 300,000 redeemable non-participating (“shares”) of no par value. Non-participating shares do not entitle the holders thereof to any dividend and on a winding up entitle the holders thereof to receive the amount paid up thereon but do not otherwise entitle them to participate in the assets of the Company. The Directors have the power to allot shares in the capital of the Company on such terms and in such manner as they may think fit. As at 31 December 2015 there were two non-participating shares in issue. The two non-participating shares do not form part of the net asset value of the Company and are thus disclosed in the financial statements by way of this note only. ln the opinion of the Directors, this disclosure reflects the nature of the Company’s business as an investment fund. The rights attaching to the shares issued in any class or Fund may, whether or not the Company is being wound up, be varied or abrogated with the consent in writing of the shareholders of three-quarters of the issued shares of that class or Fund, or with the sanction of an ordinary resolution passed at a general meeting of the shareholders of that class or Fund. A resolution in writing signed by all the shareholders and holders of non-participating shares for the time being entitled to attend and vote on such resolution at a general meeting of the Company shall be as valid and effective for all purposes as if the resolution had been passed at a general meeting of the Company duly convened and held and if described as a special resolution shall be deemed to be a special resolution. The rights attaching to the shares shall not be deemed to be varied by the creation, allotment or issue of any further shares ranking pari passu with shares already in issue. There are no rights of pre-emption upon the issue of shares in the Company. The following rules relating to voting rights apply: (a) Fractions of shares do not carry voting rights. (b) Every Shareholder or holder of non-participating shares present in person or by proxy who votes on a show of hands shall be entitled to one vote. Each Shareholder shall be entitled to one vote in respect of each share held and every holder of non-participating shares shall be entitled to one vote in respect of all non-participating shares held. Applications for shares may be made through the Distributor for onward transmission to the Administrator on behalf of the Company or directly to the Administrator. Applications received by the Administrator prior 11.30am Irish time on any dealing day will be processed on that dealing day. Any applications received after 11.30am Irish time on any dealing day will be processed on the following dealing day unless the Directors in their absolute discretion otherwise determine(s).


98


5. Share capital and redeemable participating share s (continued)

Shareholders may redeem their shares on and with effect from any dealing day at the Net Asset Value per Share calculated on or with respect to the relevant dealing day in accordance with the procedures specified below (save during any period when the calculation of Net Asset Value is suspended) less any redemption charge that may be payable. If the redemption of part only of a shareholder’s shareholding would leave the shareholder holding less than the Minimum Holding for the relevant Fund, the Company or its delegate may, if it thinks fit, redeem the whole of that shareholder's holding. Capital management As a result of the ability to issue and redeem shares, the capital of the Company can vary depending on the demand for redemptions and subscriptions to the Funds. The Company is not subject to externally imposed capital requirements, other than the requirement to maintain capital of at least €300,000. The redeemable shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor’s share in the relevant Sub-Fund’s net assets at each redemption date and are classified as liabilities. The Company’s objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors, and to manage liquidity risk arising from redemptions. The Company’s management of the liquidity risk arising from redeemable shares is discussed in note 9.

6. Fees Establishment expenses All fees and expenses relating to the establishment and organisation of the Company and the Funds will be borne by the Company. Such fees and expenses payable by the Company may be amortised over the first five accounting periods of the Company or such other period as the Directors may determine and in such manner as the Directors in their absolute discretion deem fair and shall be subject to such adjustment following the establishment of new Funds as the Directors may determine. There were establishment expenses of €45,300 (31 December 2014: €45,289) charged for the financial year ended 31 December 2015. Expenses of €102,081 (31 December 2014: €56,781) were outstanding at 31 December 2015. Auditors’ Remuneration Charged for the financial year


€ €

Audit of statutory accounts 67,120 38,808

Other assurance services - -

Tax advisory services - -

Other non-audit services - -

67,120 38,808

The above fees are exclusive of V.A.T. Audit fees of €60,001 (31 December 2014: €Nil) were outstanding at 31 December 2015.


99

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 6. Fees (continued)

Global distributor and promoter fees ČP INVEST investiční společnost, a.s. is the Global distributor and promoter. The below table outlines the fee rates for which the distributor shall be entitled to receive out of the net asset value of the relevant class within the relevant Fund. Such fees shall accrue daily and be payable monthly in arrears.

Distributor's fee rates

Share Class % of net asset value

Generali CEE Cash & Bond Fund A EUR, A CZK, A PLN 0.20%

Generali CEE Corporate Bonds Fund A EUR, A CZK, B EUR, B CZK 1.20%

Generali CEE Corporate Bonds Fund A PLN, B PLN 1.30%

Generali CEE Global Brands Fund A EUR, A CZK, A PLN 1.80%

Generali CEE New Economies Fund A EUR, A PLN 1.80%

Generali CEE Oil Industry & Energy Production Fund A EUR, A PLN 1.80%

Generali CEE Commodity Fund A EUR, A CZK 1.80%

Generali CEE Commodity Fund A PLN 2.30%

Generali CEE Emerging Europe Fund A EUR, A CZK, A PLN 1.80%

Generali CEE Emerging Europe Fund I EUR, Y EUR 0.10%

Generali CEE Emerging Europe Bond Fund A EUR, A CZK, A PLN 1.20%

Generali CEE Emerging Europe Bond Fund Y EUR 0.10%

Generali CEE Balanced Fund A EUR, A CZK, A PLN 1.40%

Generali CEE Dynamic Balanced Fund A EUR, A CZK, A PLN 1.60% The fees charged for the financial year amounted to €1,336,745 (31 December 2014: €1,246,545). Fees of €339,240 (31 December 2014: €317,110) were outstanding at 31 December 2015. Directors’ fees and expenses The Directors’ fees charged for the financial year amounted to €100,000 (31 December 2014: €97,138). Fees of €30,127 (31 December 2014: €10,810) were outstanding at 31 December 2015. The Directors’ expenses charged for the financial year amounted to €12,633 (31 December 2014: €0). Administration fees The Company shall pay to the Administrator out of the assets of the Company an annual fee, these fees will be amalgamated at Umbrella level and accrued on a Pro-Rata basis according to the level of assets at Sub-Fund level. These fees are payable monthly in arrears, at a rate which shall not exceed 0.07% of the Net Asset Value of each Sub-Fund subject to a minimum annual fee of EUR27,500 per Sub-Fund (plus VAT, if any thereon). There were Administration fees of €406,597 (31 December 2014: €405,304) charged for the financial year ended 31 December 2015. Fees of €84,942 (31 December 2014: €95,936) were outstanding at 31 December 2015. Custodian’s fees The Custodian receives an annual fee, accrued at each valuation point and payable monthly in arrears, which shall not exceed 0.02% per annum of the Net Asset Value of each Fund, subject to a minimum annual fee of €3,500 per Fund. The Custodian shall also be entitled to be repaid all of its disbursements out of the assets of the relevant Fund, including couriers’ fees and telecommunication costs and expenses and the fees, transaction charges and expenses of any sub-custodian appointed by it which shall be at normal commercial rates together with VAT, if any. Each Fund will bear its proportion of the fees and expenses of the Custodian. Custodian’s fees of €79,435 (31 December 2014: €72,995) were charged for the financial year ended 31 December 2015. Fees of €5,041 (31 December 2014: €13,086) were outstanding at 31 December 2015.


100


6. Fees (continued)

Investment Manager’s fees The Investment Manager is entitled to charge a fee not exceeding 0.50% per annum of the Net Asset Value of each Fund. The fee payable to the Investment Manager will be calculated and accrued at each valuation point based on the daily Net Asset Value of the shares and will be paid monthly in arrears.

The Investment Manager shall also be entitled to be repaid all of its reasonable out-of-pocket expenses incurred on behalf of each Fund.

The Investment Manager may waive or reduce the annual investment management fees charged to certain shareholders at its discretion. Any such waiver may be affected either by way of rebate to the relevant shareholder’s account or by the purchase of bonus shares by the Investment Manager for the shareholder.

Investment Manager’s fees of €552,576 (31 December 2014: €524,637) were charged for the financial year ended 31 December 2015. Fees of €138,972 (31 December 2014: €131,679) were outstanding at 31 December 2015.

All fees settled within one month from the balance sheet date for both 31 December 2015 and 31 December 2014.

7. Other Expenses & Other Expenses Payable

Below is the breakdown for other expense payable during the financial year ended 31st December 2015 and the financial year ended 31st December 2014.


Fund


Fund


Fund


Fund


Note EUR EUR EUR EUR Professional fees 2,043 - 1,888 -

Provision for trustee fee 360 293 376 297

Trustee fee payable 726 585 732 585

Financial statements 1,260 1,261 1,260 1,258

Secretarial services 574 320 573 320

Consulting fees 1,409 - 1,282 -

Insurance fee 321 2,009 709 2,410

CBI Fees 600 - 552 -Formation expense 16,005 10,514 16,005 10,514

Interest and dividends 8 - 18 -

Total Other Payables 23,306 14,982 23,395 15,384


Fund


Fund


Fund


Fund


Note EUR EUR EUR EUR Professional fees 959 - 1,373 -





Consulting fees 712 - 709 -

Insurance fee - 1,182 - 1,187

CBI Fees 282 - 402 -Formation expense 16,005 10,514 16,005 10,514Interest and dividends 14 - 16 92



101

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 7. Other Expenses & Other Expenses Payable (continu ed)


Production Fund


Product ion Fund


Fund



Note EUR EUR EUR EUR Professional fees 788 - 747 -





Consulting fees 379 - 246 -

Insurance fee - 1,033 - 1,181

CBI Fees 231 - 221 -Formation expense 16,005 10,514 16,005 10,514

Interest and dividends 4 - 8 49



Fund


Fund


Bond Fund


Bond Fund

31 December 2015 3 1 December 2014 31 December 2015 31 December 2014

Note EUR EUR EUR EUR Professional fees 2,916 - 2,943 -


Trustee fee payable 1,065 937 1,067 1,053



Consulting fees 1,888 - 1,863 -

Insurance fee 192 1,184 164 839

CBI Fees 1,059 201 864 66

Formation expense 9,484 4,521 4,650 -Interest and dividends 17 - 12 -Total Other Payables 19,210 8,891 14,017 3,886

Generali CEE


Balanced Fund *

Generali CEEDynamic

Balanced Fund*

Generali CEEDynamic

Balanced Fund *


Note EUR EUR EUR EUR Professional fees 840 - 503 -





Consulting fees 625 70 354 70

Insurance fee 153 91 37 91

CBI Fees 359 112 260 111

Interest and dividends 20 - 15 -Total Other Payables 4,396 2,718 3,461 2,717


102

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 7. Other Expenses & Other Expenses Payable (continu ed) Below is the breakdown for other expense charged during the financial year ended 31st December 2015 and the financial year ended 31st December 2014.


Fund


Fund


Fund

Generali CEECorporate B onds


Note EUR EUR EUR EUR Formation expenses (5,490) (5,490) (5,490) (5,490)

Consulting fees (7,340) (3,474) (6,986) (3,475)

Insurance fee (545) (1,375) (503) (1,776)

Out-of-pocket expenses (58) (75) (57) (75)

Representive fees (291) - (264) (1,563)

Professional fees (10,140) (1,562) (9,356) (1,195)

Secretarial services (1,565) (1,194) (1,446) (300)

Bank fees (411) (300) (373) (3,490)Trustee fee (4,403) (3,490) (4,046) (5,000)

Financial statements (5,003) (5,000) (5,000) (458)

CBI Fees (805) (458) (762) (2)

Bank interests (2,894) - (1,401) -

Total Other Charges (38,945) (22,418) (35,684) (22,824)


Fund


Fund


Fund


Fund



Consulting fees (4,883) (3,474) (5,818) (3,475)

Insurance fee (256) (553) (366) (553)


Representative fees (135) (1,562) (196) (1,563)


Secretarial services (736) (300) (1,053) (424)

Bank fees (191) (3,489) (276) (3,490)

Trustee fee (3,499) (5,000) (3,500) (5,000)

Financial statements (5,000) (458) (4,999) (458)

CBI Fees (612) (55) (609) (95)

Bank interests (947) - (1,725) -



103



Production Fund


Production Fund


Fund


Fund



Consulting fees (4,495) (3,474) (4,403) (3,474)

Insurance fee (210) (401) (199) (553)


Representative fees (113) - (107) (1,348)


Secretarial services (605) (1,194) (574) (300)

Bank fees (159) (300) (152) (3,490)

Trustee fee (3,500) (3,490) (3,500) (5,000)

Financial statements (5,000) (5,000) (4,999) (458)

CBI Fees (439) (458) (426) (107)

Bank interests (662) (33) (1,100) -



Fund


Fund


Bond Fund


Bond Fund



Consulting fees (11,799) (7,814) (9,691) (3,474)

Insurance fee (1,430) (550) (785) (550)


Representative fees (414) - (417) -


Secretarial services (2,236) (1,194) (2,257) (1,194)

Bank fees (631) (475) (2,526) (2,236)Brokerage fees (199) - - -

Trustee fee (6,217) (5,447) (6,279) (6,185)

Financial statements (5,002) (5,000) (5,000) (5,000)

CBI Fees (853) (458) (799) (458)

Bank interests (1,935) (123) (3,018) (73)



104


Generali CEE


Balanced Fund *

Generali CEEDynamic

Balanced Fund*

Generali CEEDynamic

Balanced Fund *


Note EUR EUR EUR EUR Formation expenses (999) (994) (999) (994)

Consulting fees (2,879) (3,373) (2,912) (3,373)

Insurance fee (224) (398) (441) (398)


Representative fees (117) - (70) -


Secretarial services (2,179) (1,140) (385) (1,140)

Bank fees (165) (300) (99) (300)

Trustee fee (3,500) (4,418) (3,500) (3,481)

Financial statements (5,001) (4,973) (4,999) (4,973)

CBI Fees (247) (543) (150) (543)

Bank interests (780) (79) (338) (26)


8. Related parties

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or if the party is a member of the key management personnel of the entity or its parent.

As at 31 December 2015 Mr. Radek Moc, Ms. Alexandra Hajkova, Mr. Martin Brož and Mr. Patrik Hudec were all directors of the Company, were also employees of the Manager, or its related group companies. Mr. Karel Novák resigned as Director to the Board as at 28 January 2016. The fees paid to the Manager and its other group companies and the Director fees are disclosed in note 6. The parent company of the Manager and the Investment Manager is CZI Holdings N.V., the ultimate parent company is Assicurazioni Generali S.p.A.


105


8. Related parties (continued)

As at 31 December 2015 and 31 December 2014, ČP INVEST investiční společnost, a.s. held the following redeemable participating shares in each of the Funds:

Fund name Related Party Share Class

Quantity of Shares Held

31 December 2015

Quantity of Shares Held

31 December 2014

Generali CEE Cash & Bond Fund ČP INVEST investiční společnost A EUR 914,863.220 979,106.490

Generali CEE Cash & Bond Fund ČP INVEST investiční společnost A PLN 61,215.420 61,636.860

Generali CEE Cash & Bond Fund ČP INVEST investiční společnost A CZK 1,068,232.830 201,728.890

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost A EUR 480,647.140 608,812.300

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost A PLN 37,361.890 28,141.510

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost B CZK 106,277.951 124,544.971

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost B EUR 51,748.580 78,860.450

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost B PLN 1,544.130 1,407.260

Generali CEE Corporate Bonds Fund ČP INVEST investiční společnost A CZK 1,161,069.920 369,114.730

Generali CEE Global Brands Fund ČP INVEST investiční společnost A EUR 544,901.210 1,162,321.730

Generali CEE Global Brands Fund ČP INVEST investiční společnost A PLN 29,323.320 15,435.740

Generali CEE Global Brands Fund ČP INVEST investiční společnost A CZK 1,473.850 137.900

Generali CEE New Economies Fund ČP INVEST investiční společnost A EUR 1,365,390.440 1,463,932.620

Generali CEE New Economies Fund ČP INVEST investiční společnost A PLN 31,661.840 9,813.720 Generali CEE Oil Industry & Energy Production ČP INVEST investiční společnost A EUR 820,490.080 961,787.520 Generali CEE Oil Industry & Energy Production ČP INVEST investiční společnost A PLN 26,590.700 6,826.750

Generali CEE Commodity Fund ČP INVEST investiční společnost A CZK 286,818.170 245,087.100

Generali CEE Commodity Fund ČP INVEST investiční společnost A EUR 756,753.890 809,709.080

Generali CEE Commodity Fund ČP INVEST investiční společnost A PLN 22,399.410 6,509.810

Generali CEE Emerging Europe Fund ČP INVEST investiční společnost A CZK 2,819.560 234,619.450

Generali CEE Emerging Europe Fund ČP INVEST investiční společnost A EUR 2,434.910 33,800.670

Generali CEE Emerging Europe Fund ČP INVEST investiční společnost A PLN 441.800 441.090

Generali CEE Emerging Europe Fund ČP INVEST investiční společnost I EUR 260,099.390 260,099.390

Generali CEE Emerging Europe Fund ČP INVEST investiční společnost Y EUR 2,353,287.521 2,353,287.510

Generali CEE Emerging Europe Bond Fund ČP INVEST investiční společnost A CZK 237,239.540 2,509.400

Generali CEE Emerging Europe Bond Fund ČP INVEST investiční společnost A EUR 379,339.260 2,709.820

Generali CEE Emerging Europe Bond Fund ČP INVEST investiční společnost A PLN 12.420 -

Generali CEE Emerging Europe Bond Fund ČP INVEST investiční společnost Y EUR 3,093,240.450 3,093,240.450

Generali CEE Balanced Fund ČP INVEST investiční společnost A CZK 785,346.880 126,157.400

Generali CEE Balanced Fund ČP INVEST investiční společnost A EUR 267,887.020 268,766.510

Generali CEE Balanced Fund ČP INVEST investiční společnost A PLN 3,791.210 3,073.930

Generali CEE Dynamic Balanced Fund ČP INVEST investiční společnost A CZK 331,189.640 56,572.800

Generali CEE Dynamic Balanced Fund ČP INVEST investiční společnost A EUR 277,645.850 252,507.620

Generali CEE Dynamic Balanced Fund ČP INVEST investiční společnost A PLN 2,606.815 1,860.540

9. Financial instrument risk

The Company is exposed to various forms of investment and operational risk, information on which is provided in the Company’s Prospectus. The Company is also required under IFRS 7 “Financial Instruments: Disclosure” to include a review of risks along the specific lines required by the standard. For IFRS 7 purposes, the Company is exposed to market risk, liquidity risk and credit risk arising from the financial instruments it holds.


106


9. Financial instrument risk (continued)

Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate. Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss that the Funds of the Company might suffer by holding market positions in the face of price movements. The Funds are exposed to market risks through their investment in securities traded on global markets and the profits generated are the returns from incurring this risk.

Market risk is further defined in IFRS 7 as currency risk, interest rate risk and equity price risk.

Equity price risk Equity price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment or its issuer or factors affecting the equity markets as a whole.

The Company‘s equity price risk is managed through diversification of the portfolios of the Funds. Asset allocation is determined by the Company’s Investment Manager who manages the allocation of the assets to achieve each Fund’s investment objective. The risks are measured through monitoring sector or country exposures against the relevant benchmark for the market on a daily basis via live spreadsheets.

Market price risk

As at 31 December 2015, a 5% increase or decrease in the market prices of the underlying instruments would have increased or decreased the net assets attributable to holders of redeemable shares by the amounts shown below, on the basis that all other variables remained constant. The Investment Manager considers this movement to be a reasonable size of movement to use as an indicator of the size of market price move a Fund might experience.

*Launched on 3 January 2014.

It is important to note that this form of sensitivity analysis is unrepresentative of the risk inherent in the financial instruments held by the Company as the measure is a point-in-time calculation, reflecting positions as recorded at that date, which do not necessarily reflect the risk position held at any other time.

Limitations of analysis Some limitations of sensitivity analysis are:

� the models are based on historical data and do not take into account the fact that the future market price movements, correlation between markets and levels of market liquidity in conditions of market stress may bear no relation to historical patterns;

� the market price information is a relative estimate of risk rather than a precise and accurate number; � the market price information represents a hypothetical outcome and is not intended to be predictive;

and � future market conditions could vary significantly from those experienced in the past.


EUR EUR

Generali CEE Cash & Bond Fund 999,522 635,218

Generali CEE Corporate Bonds Fund 1,039,572 640,696

Generali CEE Global Brands Fund 450,145 819,001

Generali CEE New Economies Fund 608,561 739,920

Generali CEE Oil Industry & Energy Production Fund 338,513 473,851

Generali CEE Commodity Fund 323,123 344,967

Generali CEE Emerging Europe Fund 1,439,292 1,115,317

Generali CEE Emerging Europe Bond Fund 1,527,182 1,427,972

Generali CEE Balanced Fund* 476,880 177,224

Generali CEE Dynamic Balanced Fund* 276,161 148,127


107

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 9. Financial instrument risk (continued)

Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. Only those Funds that invest in debt securities had a material exposure to this risk, and these Funds are identified below. Changes to prevailing rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held. The size of such increases or decreases will be greater when the maturity of the outstanding securities is longer. The amount of income receivable from floating rate securities and bank balances or payable on bank overdrafts will also be affected by fluctuations in interest rates. The Investment Manager monitors the Funds‘ securities and cash positions on a daily basis. The table below shows the maturities of the interest bearing financial assets and financial liabilities of the Funds as at 31 December 2015 and 31 December 2014. As at 31 December 2015 Less than More than Non-Interest Generali CEE Cash & Bond Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 7,318,146 12,672,303 - 19,990,449Derivative financial assets - - 117,950 117,950Interest and dividends receivable - - 13 13Cash and cash equivalents 1,290,079 - - 1,290,079Amount receivable from subscriptions - - 81,647 81,647Other receivables - - 1,454 1,454Total assets 8,608,225 12,672,303 201,064 21,481,592 Liabilities Derivative financial liabilities - - 34,551 34,551 Payable on redemptions - - 28,299 28,299 Administration and transfer agency fees payable - - 10,313 10,313 Custodian fees payable - - 676 676 Audit fees payable - - 8,173 8,173 Director fees payable - - 4,137 4,137 Distribution fees payable - - 11,269 11,269 Other expenses payable - - 23,306 23,306 Total liabilities - - 120,724 120,724 Total interest sensitivity gap 8,608,225 12,672,303 80,340 21,360,868

As at 31 December 2014 Less than More than Non-Interest Generali CEE Cash & Bond Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 9,102,643 3,060,155 541,570 12,704,368 Derivative financial assets - - 4,359 4,359 Cash and cash equivalents 711,740 - - 711,740 Amount receivable from subscriptions - - 446,962 446,962 Other receivables - - 9,449 9,449 Total assets 9,814,383 3,060,155 1,002,340 13,876,878 Liabilities Derivative financial liabilities - - 209,144 209,144Payable on redemptions - - 40,542 40,542Amount payable on purchase of securities - - 206,294 206,294Administration and transfer agency fees payable - - 9,543 9,543Custodian fees payable - - 535 535Director fees payable - - 832 832Distribution fees payable - - 11,870 11,870Other expenses payable - - 14,982 14,982 Total liabilities - - 493,742 493,742 Total interest sensitivity gap 9,814,383 3,060,155 508,598 13,383,136


108


Interest rate risk (continued)

As at 31 December 2015 Less than More than Non-Interest Generali CEE Corporate Bonds Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 3,977,677 16,813,769 - 20,791,446 Derivative financial assets - - 294,669 294,669 Cash and cash equivalents 1,434,030 - - 1,434,030 Interest and dividends receivable - - 4 4 Amount receivable from subscriptions - - 84,880 84,880 Other receivables - 1,361 1,361 Total assets 5,411,707 16,813,769 380,914 22,606,390 Liabilities Derivative financial liabilities - - 65,484 65,484 Payable on redemptions - - 98,953 98,953 Investment management fees payable - - 16,629 16,629 Administration and transfer agency fees payable - - 12,015 12,015 Custodian fees payable - - 691 691 Audit fees payable - - 7,550 7,550 Director fees payable - - 3,929 3,929 Distribution fees payable - - 67,118 67,118 Other expenses payable - - 23,395 23,395 Total liabilities - - 295,764 295,764 Total interest sensitivity gap 5,411,707 16,813,769 85,150 22,310,626

As at 31 December 2014 Less than More than Non-Interest Generali CEE Corporate Bonds Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 3,121,696 9,692,220 - 12,813,916 Derivative financial assets - - 18,286 18,286 Cash and cash equivalents 822,194 - - 822,194 Amount receivable from subscriptions - - 451,949 451,949 Other receivables - - 4,226 4,226 Total assets 3,943,890 9,692,220 474,461 14,110,571 Liabilities Derivative financial liabilities - - 254,586 254,586 Payable on redemptions - - 51,844 51,844 Investment management fees payable - - 10,511 10,511 Administration and transfer agency fees payable - - 11,953 11,953 Custodian fees payable - - 581 581 Director fees payable - - 826 826 Distribution fees payable - - 42,262 42,262 Other expenses payable - - 15,384 15,384 Total liabilities - - 387,947 387,947 Total interest sensitivity gap 3,943,890 9,692,220 86,514 13,722,624


109




As at 31 December 2015 Less than More than Non-Interest Generali CEE Global Brands Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 184,584 - 8,818,317 9,002,901 Derivative financial assets - - 108,406 108,406 Cash and cash equivalents 554,661 - - 554,661 Interest and dividends receivable - - 6,732 6,732 Amount receivable from subscriptions - - 3,307 3,307 Other receivables - - 1,255 1,255 Total assets 739,245 - 8,938,017 9,677,262 Liabilities Derivative financial liabilities - - 13,849 13,849 Payable on redemptions - - 2,933 2,933 Investment management fees payable - - 8,457 8,457 Administration and transfer agency fees payable - - 5,149 5,149 Custodian fees payable - - 302 302 Audit fees payable - - 3,837 3,837 Director fees payable - - 2,144 2,144 Distribution fees payable - - 43,532 43,532 Other expenses payable - - 20,381 20,381 Total liabilities - - 100,584 100,584 Total interest sensitivity gap 739,245 - 8,837,433 9,576,678

At 31 December 2014, Generali CEE Global Brands Fund was not exposed to significant interest rate risk as the majority of the Funds’ financial assets were equity shares.

As at 31 December 2015 Less than More than Non-Interest Generali CEE Emerging Europe Bond Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss - 30,543,634 - 30,543,634Derivative financial assets - - 145,746 145,746Cash and cash equivalents 868,006 - - 868,006Interest and dividends receivable - - 48 48Amount receivable from subscriptions - - 18 18Other receivables - - 2,181 2,181Total assets 868,006 30,543,634 147,993 31,559,633 Liabilities Derivative financial liabilities - - 956 956Investment management fees payable - - 24,032 24,032Administration and transfer agency fees payable - - 15,743 15,743Custodian fees payable - - 997 997Audit fees payable - - 11,773 11,773Director fees payable - - 5,878 5,878Distribution fees payable - - 148 148Other expenses payable - - 22,605 22,605Total liabilities - - 82,132 82,132Total interest sensitivity gap 868,006 30,543,634 65,861 31,477,501


110




As at 31 December 2014 Less than More than Non-Interest Generali CEE Emerging Europe Bond Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 1,704,090 26,855,345 - 28,559,435Cash and cash equivalents 892,746 - - 892,746Interest and dividends receivable - - 13 13Amount receivable from subscriptions - - 2,222 2,222Other receivables - - 5,896 5,896Total assets 2,596,836 26,855,345 8,131 29,460,312 Liabilities Derivative financial liabilities - - 77,618 77,618Investment management fees payable - - 23,402 23,402Administration and transfer agency fees payable - - 14,601 14,601Custodian fees payable - - 3,463 3,463Director fees payable - - 1,250 1,250Distribution fees payable - - 143 143Other expenses payable - - 12,012 12,012Total liabilities - - 132,489 132,489Total interest sensitivity gap 2,596,836 26,855,345 (124,358) 29,327,823

As at 31 December 2015 Less than More than Non-Interest Generali CEE Balanced Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 841,758 5,072,698 3,623,135 9,537,591 Derivative financial assets - - 134,913 134,913 Cash and cash equivalents 895,068 - - 895,068 Interest and dividends receivable - - 592 592 Amount receivable from subscriptions - - 60,274 60,274 Other receivables - - 4,623 4,623 Total assets 1,736,826 5,072,698 3,823,537 10,633,061 Liabilities Derivative financial liabilities - - 20,077 20,077 Payable on redemptions - 4,202 - 4,202 Investment management fees payable - - 9,087 9,087 Administration and transfer agency fees payable - - 5,957 5,957 Custodian fees payable - - 323 323 Audit fees payable - - 3,359 3,359 Director fees payable - - 1,834 1,834 Distribution fees payable - - 36,348 36,348 Other expenses payable - - 4,396 4,396 Total liabilities - 4,202 81,381 85,583 Total interest sensitivity gap 1,736,826 5,068,496 3,742,156 10,547,478


111



As at 31 December 2014 Less than More than Non-Interest Generali CEE Balanced Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 330,420 1,901,783 1,312,269 3,544,472 Derivative financial assets - - 17 17 Cash and cash equivalents 238,313 - - 238,313 Interest and dividends receivable - - 419 419 Amount receivable from subscriptions - - 239,666 239,666 Other receivables - - 7,295 7,295 Total assets 568,733 1,901,783 1,559,666 4,030,182 Liabilities Derivative financial liabilities - - 55,727 55,727 Investment management fees payable - - 3,058 3,058 Administration and transfer agency fees payable - - 5,182 5,182 Custodian fees payable - - 394 394 Director fees payable - - 1,879 1,879 Distribution fees payable - - 12,231 12,231 Other expenses payable - - 2,718 2,718 Total liabilities - - 81,189 81,189 Total interest sensitivity gap 568,733 1,901,783 1,478,477 3,948,993

As at 31 December 2015 Less than More than Non-Interest Generali CEE Dynamic Balanced Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 182,219 1,912,448 3,428,551 5,523,218 Derivative financial assets - - 72,836 72,836 Cash and cash equivalents 515,065 - - 515,065 Interest and dividend - - 274 274 Amount receivable from subscriptions - - 27,413 27,413 Other receivables - - 4,625 4,625 Total assets 697,284 1,912,448 3,533,699 6,143,431 Liabilities Derivative financial liabilities - - 8,634 8,634 Payable on redemptions - - 3,318 3,318 Investment management fees payable - - 6,043 6,043 Administration and transfer agency fees payable - - 4,099 4,099 Custodian fees payable - - 188 188 Audit fees payable - - 2,012 2,012 Director fees payable - - 1,059 1,059 Distribution fees payable - - 24,170 24,170 Other expenses payable - - 3,461 3,461 Total liabilities - - 52,984 52,984 Total interest sensitivity gap 697,284 1,912,448 3,480,715 6,090,447


112




As at 31 December 2014 Less than More than Non-Interest Generali CEE Dynamic Balanced Fund 1 year 1 year Bearing Total EUR EUR EUR EURAssets Financial assets at fair value through profit or loss 247,812 870,600 1,844,123 2,962,535 Derivative financial assets - - 6 6 Cash and cash equivalents 173,753 - - 173,753 Interest and dividend - - 113 113 Amount receivable from subscriptions - - 88,983 88,983 Other receivables - - 7,295 7,295 Total assets 421,565 870,600 1,940,520 3,232,685 Liabilities Derivative financial liabilities - - 47,846 47,846 Investment management fees payable - - 2,951 2,951 Administration and transfer agency fees payable - - 4,996 4,996 Custodian fees payable - - 296 296 Director fees payable - - 1,879 1,879 Distribution fees payable - - 11,804 11,804 Other expenses payable - - 2,717 2,717 Total liabilities - - 72,489 72,489 Total interest sensitivity gap 421,565 870,600 1,868,031 3,160,196 The interest rate profile of financial assets held at fair value through profit or loss by the Company as at 31 December 2015 is as follows (expressed in EUR):

Generali CEE Cash & Bond Fund Total

Fixed Rate Financial Assets

Floating Rate Financial Assets

Non-Interest Bearing Financial Assets

31 December 2015 31 December 2015 31 December 2015 31 December 2015 EUR 19,990,449 16,366,755 3,623,694 -

Generali CEE Cash & Bond Fund Total




31 December 2014 31 December 2014 31 December 2014 31 December 2014 EUR 12,704,368 10,812,690 1,350,108 541,570

Generali CEE Corporate Bonds Fund Total





EUR 20,791,446 20,006,334 785,112 -

Generali CEE Corporate Bonds Fund Total





EUR 12,813,916 12,131,548 682,368 -

Generali CEE Global Brands Fund Total





EUR 9,002,901 184,584 - 8,818,317


113




Generali CEE Emerging Europe Bond Fund Total





EUR 30,543,634 30,543,634 - -

Generali CEE Emerging Europe Bond Fund Total





EUR 28,559,435 28,559,435 - -

Generali CEE Balanced Fund Total Fixed Rate Financial

Assets Floating Rate

Financial Assets Non-Interest Bearing

Financial Assets


EUR 9,537,591 5,865,387 49,069 3,623,135

Generali CEE Balanced Fund Total Fixed Rate Financial

Assets Floating Rate

Financial Assets Non-Interest Bearing

Financial Assets


EUR 3,544,472 2,232,203 - 1,312,269

Generali CEE Dynamic Balanced Fund* Total





EUR 5,523,218 2,094,667 - 3,428,551

Generali CEE Dynamic Balanced Fund* Total





EUR 2,962,535 1,118,412 - 1,844,123 During the year, the Funds were also exposed to interest rate risk on cash balances that earn interest at a floating rate. As at 31 December 2015 and 31 December 2014, the effect of any reasonably possible movement in interest rates would have an immaterial direct effect on the value of these cash assets. .


114



Interest rate risk (continued) Sensitivity Analysis The basis point value (BPV) expresses the change in value of an asset or financial instrument that results from a 0.01 percentage increase on whole interest rate curve. The Investment Manager considers this movement to be a reasonable basis for this analysis for those Funds investing in debt securities: Fund BPV Analysis 31 December 2015 31 December 2014

EUR EUR Generali CEE Cash & Bond Fund (1,772) (563) Generali CEE Corporate Bonds Fund (4,147) (2,075) Generali CEE Global Brands Fund - - Generali CEE Emerging Europe Bond Fund (12,174) (10,595) Generali CEE Balanced Fund* (1,432) (477) Generali CEE Dynamic Balanced Fund* (512) (248)

* Launched 3 January 2014 It is important to note that this form of sensitivity analysis is unrepresentative of the risk inherent in the financial instruments held by the Funds as the measure is a point-in-time calculation, reflecting positions as recorded at that date, which do not necessarily reflect the risk position held at any other time.

At 31 December 2015 and 31 December 2014, Generali CEE New Economies Fund, Generali CEE Oil Industry & Energy Production Fund, Generali CEE Commodity Fund and Generali CEE Emerging Europe Fund were not exposed to significant interest rate risk as the majority of the Funds’ financial assets were equity shares and exchange traded funds.

Currency risk The income and capital value of a Fund’s investments can be affected by currency movements. Depending on an investor’s currency of reference, currency fluctuations may adversely affect the value of an investment. Assets of a Fund may be denominated in a currency other than the base currency of the Fund and changes in the exchange rate between the base currency and the currency of the asset may lead to a depreciation of the value of the Fund’s assets as expressed in the base currency. It may not be possible or practical to hedge against such exchange rate risk. The Investment Manager may, but is not obliged to, mitigate this risk by using financial instruments. Funds may from time to time enter into currency exchange transactions by buying currency exchange forward contracts. Forward currency exchange contracts do not eliminate fluctuations in the prices of a Fund’s securities or in foreign exchange rates, or prevent loss if the prices of these securities should decline. Where a Fund has a share class in a currency different to the base currency of the Fund, the value of shares expressed in the class currency are subject to exchange rate risk in relation to the base currency and may be affected favourably or unfavourably by fluctuations in the currency rates, to the extent these currency exposures are not hedged. Share class hedging is conducted by the Company on a best efforts basis and there is no guarantee that this currency hedging will be successful. Hedged classes are indicated in the Company’s Prospectus.

The currency exposure of each Fund and an analysis of currency sensitivity, as at 31 December 2015 are shown in the following tables. The sensitivity analysis assumes that had the exchange rate between Euro and the other currencies increased or decreased by 5% with all other variables held constant, the net asset attributable to redeemable participating shareholders would increase or decrease, as the case may be, by the following amounts. The Investment Manager considers a 5% movement to be a reasonable basis for this analysis.


115


Currency risk (continued)

Generali CEE Cash & Bond Fund

Investments Net Monetary AssetsForward Foreign Exchange

Contracts Total Currency


All amounts stated in EUR

CZK 185,507 83,314 (268,547) 274 PLN - 833 57 890 USD 3,807,440 1,034,848 (4,601,433) 240,855 Total 3,992,947 1,118,995 (4,869,923) 242,019




All amounts stated in EUR CZK 895,062 361,406 (1,198,392) 58,076 PLN - 9,128 (9,104) 24 USD 7,113,055 165,002 (7,188,658) 89,399 Total 8,008,117 535,536 (8,396,154) 147,499 Sensitivity analysis

Generali CEE Corporate Bonds Fund




All amounts stated in EUR CZK 500,555 174,743 (628,702) 46,596 PLN - 1,924 (769) 1,155 USD 16,941,699 791,617 (17,561,967) 171,349 Total 17,442,254 968,284 (18,191,438) 219,100

Investments Net Monetary Assets Forward Foreign Exchange


31 December 201 4 31 December 2014 31 December 201 4 31 December 2014 All amounts stated in EUR

CZK 631,980 366,393 (1,034,360) (35,987) PLN - 54,202 (53,930) 272 USD 9,965,864 534,561 (10,583,896) (83,471) Total 10,597,844 955,156 (11,672,186) (119,186)

Sensitivity analysis

All amounts are stated in EUR 31 December 2015 31 December 2014

CZK 2,330 (1,799) PLN 58 14 USD 8,567 (4,174)


CZK 14 2,904 PLN 45 1 USD 12,043 4,470


116



Currency risk (continued) Generali CEE Global Brands Fund




All amounts stated in EUR CZK - 18 (18) -PLN - 1,114 (920) 194 SEK - 18,848 - 18,848 USD 6,325,048 144,625 (6,440,974) 28,699 Total 6,325,048 164,605 (6,441,912) 47,741




All amounts stated in EUR PLN - 3,293 (2,963) 330 SEK - 14,953 - 14,953 USD 11,324,063 399,142 (11,236,685) 486,520 Total 11,324,063 417,388 (11,239,648) 501,803



PLN 10 17 SEK 942 748 USD 1,435 24,326

Generali CEE New Economies Fund




All amounts stated in EUR CZK 680,401 1,669 (654,933) 27,137 GBP 17,551 - - 17,551 HKD - 1,637 - 1,637 PLN - 1,825 (786) 1,039 USD 10,247,761 32,446 (10,076,452) 203,755 Total 10,945,713 37,577 (10,732,171) 251,119

Investments Net Monetary AssetsForward Fore ign Exchange



All amounts stated in EUR CZK 648,387 1,149 (649,396) 140 GBP 38,225 - - 38,225 HKD - 4,187 - 4,187 PLN - 2,579 (2,507) 72 USD 12,930,712 26,581 (12,559,054) 398,239 Total 13,617,324 34,496 (13,210,957) 440,863



CZK 1,357 7 GBP 878 1,911 HKD 82 209 PLN 52 4 USD 10,188 19,912


117




Generali CEE Oil Industry & Energy Production Fund


Contract s Total Currency 31 December 2015 31 December 2015 31 December 2015 31 December 2015

All amounts stated in EUR CZK 175,933 424 (164,658) 11,699 PLN - 1,591 (538) 1,053 USD 4,281,261 62,502 (4,279,039) 64,724 Total 4,457,194 64,517 (4,444,235) 77,476


Contracts Total Currency 31 December 201 4 31 December 2014 31 December 2014 31 December 2014

All amounts stated in EUR CZK 238,707 1,168 (234,504) 5,371 PLN - 2,511 (3,255) (744)USD 6,457,885 117,622 (6,114,276) 461,231 Total 6,696,592 121,301 (6,352,035) 465,858


All amounts are stated in EUR 31 December 2015 31 December 2014 CZK 585 269 PLN 53 (37) USD 3,236 23,062

Generali CEE Commodity Fund




All amounts stated in EUR

CZK - 6,863 (6,221) 642 GBP - 13,318 - 13,318 PLN - 1,373 (315) 1,058 USD 6,230,742 20,383 (5,980,688) 270,437 Total 6,230,742 41,937 (5,987,224) 285,455

Investments Net Monetary AssetsForward Foreign

Exchange Contracts Total Currency


All amounts stated in EUR CZK - 1,454 (829) 625 GBP - 12,636 - 12,636 PLN - 1,099 (1,098) 1 USD 6,263,610 149,310 (5,783,828) 629,092 Total 6,263,610 164,499 (5,785,755) 642,354


All amounts are stated in EUR 31 December 2015 31 December 2014 CZK 32 31 GBP 666 632 PLN 53 - USD 13,522 31,455


118




Generali CEE Emerging Europe Fund




All amounts stated in EUR CZK 3,843,127 2,690 (41) 3,845,776 GBP 32,450 2,937 - 35,387 HRK 428,946 7,312 - 436,258 HUF 3,854,849 1,869 - 3,856,718 PLN 4,115,465 561,587 (9) 4,677,043 RON 5,490,418 20,202 - 5,510,620 RUB 371,971 90,152 - 462,123 TRY 4,119,962 38,180 - 4,158,142 USD 3,164,530 720,193 - 3,884,723 Total 25,421,718 1,445,122 (50) 26,866,790

Generali CEE Emerging Europe Fund



31 December 2014 31 December 2014 31 December 2014 31 December 2014 All amounts stated in EUR CZK 2,514,819 314,576 (359) 2,829,036 GBP 70,676 2,786 - 73,462 HUF 2,098,031 72,133 - 2,170,164 PLN 4,212,527 1,122,041 (9) 5,334,559 RON 4,564,939 276,437 - 4,841,376 RUB 387,123 178,411 - 565,534 TRY 4,869,733 273,166 - 5,142,899 USD 1,782,804 1,748,338 - 3,531,142 Total 20,500,652 3,987,888 (368) 24,488,172


All amounts are stated in EUR 31 December 2015 31 December 2014 CZK 192,289 141,452 GBP 1,769 3,673 HRK 21,813 - HUF 192,836 108,508 PLN 233,852 266,728 RON 275,531 242,069 RUB 23,106 28,277 TRY 207,907 257,145 USD 194,236 176,557

Generali CEE Emerging Europe Bond Fund*




All amounts stated in EUR CZK - 3,719 (18) 3,701 HUF 4,921,732 27,572 (455,048) 4,494,256 PLN 8,492,959 7,903 (942,574) 7,558,288 RON 5,456,249 257,867 - 5,714,116 RUB 2,225,584 37,938 (662,045) 1,601,477 TRY 1,220,961 101,358 - 1,322,319 USD 1,927,652 60,504 (3,219,934) (1,231,778)Total 24,245,137 496,861 (5,279,619) 19,462,379


119







All amounts stated in EUR CZK - 3,626 (43,590) (39,964)HUF 3,240,815 145,504 - 3,386,319 PLN 5,289,137 227,335 - 5,516,472 RON 6,601,845 2,519 - 6,604,364 RUB 3,965,196 394,729 - 4,359,925 TRY - 12,945 - 12,945 USD 1,485,107 33,959 2,897,595 4,416,661 Total 20,582,100 820,617 2,854,005 24,256,722


All amounts are stated in EUR 31 December 2015 31 December 2014 CZK 185 (1,998) HUF 224,713 169,316 PLN 377,914 275,824 RON 285,706 330,218 RUB 80,074 217,996 TRY 66,116 647 USD (61,589) 220,833

Generali CEE Balanced Fund

Investments Net Monetary Assets

Forward Foreign Exchange Contracts Total Currency

31 December 2015 31 December 2015 31 December 2015 31 December 2015 All amounts stated in EUR CZK - 60,354 (56,736) 3,618 PLN - 1,047 - 1,047 USD 7,839,693 303,994 (8,189,240) (45,553) Total 7,839,693 365,395 (8,245,976) (40,888)




All amounts stated in EUR CZK - 243,257 (2,270,660) (2,027,403)PLN - - (61,408) (61,408)USD 2,429,631 24,495 2,430,202 4,884,328 Total 2,429,631 267,752 98,134 2,795,517



CZK 181 (101,370) PLN 52 (3,070) USD (2,278) 244,216


120




Generali CEE Dynamic Balanced Fund



31 December 2015 31 December 2015 31 December 2015 31 December 2015 All amounts stated in EUR CZK - 23,887 (23,886) 1 PLN - 1,094 - 1,094 USD 4,192,534 63,518 (4,278,647) (22,595) Total 4,192,534 88,499 (4,302,533) (21,500)



31 December 2014 31 December 2014 31 December 2014 31 December 2014 All amounts stated in EUR CZK - 88,839 (1,063,005) (974,166) PLN - - (37,907) (37,907) USD 2,180,532 71,165 2,145,356 4,397,053 Total 2,180,532 160,004 1,044,444 3,384,980 Sensitivity analysis


CZK - (48,708) PLN 55 (1,895) USD (1,130) 219,853

It is important to note that this form of sensitivity analysis is unrepresentative of the risk inherent in the financial instruments held by the Company as the measure is a point-in-time calculation, reflecting positions as recorded at that date, which do not necessarily reflect the risk position held at any other time. Credit and counterparty risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. As at 31 December 2015, all of the assets of the Company were held by the Custodian, RBC Investor Services Bank S.A., Dublin Branch. Bankruptcy or insolvency of the Custodian may cause the Company’s rights with respect to the securities held by the Custodian to be delayed or limited or a loss of any cash deposited with the Custodian. At 31 December 2015, the credit rating for RBC Investor Services Bank S.A. was AA- (31 December 2014: AA-) according to Standard and Poor’s. The total credit risk for each Fund arising from recognised financial instruments is limited to the value of each Fund’s investments shown on the Statement of Financial Position. Exposure to Financial Derivative Instruments The Investment Manager applies the commitment approach to measure the exposure of the Funds to derivatives. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.


121



Liquidity risk (continued) The main liquidity risk to the Company arises from the redemption requests of investors. The Company’s shareholders may redeem their shares on each Dealing Day for cash equal to a proportionate share of the Company’s net asset value and it is therefore potentially exposed to the liquidity risk of meeting the daily redemptions by its shareholders. The assets of the Funds typically consist of cash and marketable securities that can be realised at relatively short notice, which will enable the Company to meet any redemption requests it might receive under normal circumstances. However, in times of market stress, it may take longer than expected to realise assets or it may be necessary to accept a discount to quoted market values on sales transactions. There are a number of measures the Company can take in these circumstances to preserve the value of Shareholders’ interests in a Fund described in the Company’s prospectus, up to and including temporarily suspending dealings in the Fund.

As required by IFRS 7 the Fund’s financial liabilities should be categorised into relevant maturity groupings based on the remaining period as at 31 December 2015 and 31 December 2014 to the contractual maturity date. However, as all liabilities mature in less than one month from the balance sheet date for both 31 December 2015 and 31 December 2014, this analysis is not required in this instance. In accordance with the Company's policy, the Investment Manager monitors the Company's overall liquidity risk on a continuous basis.

The table below analyses the Company's gross settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the Statement of Financial Position date to the contractual maturity date.

As at 31 December 2015

Less than 3 months As at 31 December 2014

Less than 3 months Generali CEE Cash & Bond Fund 16,049,840 10,819,617 Generali CEE Corporate Bonds Fund 34,245,363 18,121,956 Generali CEE Global Brands Fund 7,771,191 11,240,694 Generali CEE New Economies Fund 12,228,117 13,723,645 Generali CEE Oil Industry & Energy Production Fund 5,535,459 6,234,430 Generali CEE Commodity Fund 8,427,983 7,259,844 Generali CEE Emerging Europe 2,524,664 1,954,901 Generali CEE Emerging Europe Bond Fund 5,450,375 2,919,015 Generali CEE Balanced Fund 16,327,089 3,957,308 Generali CEE Dynamic Balanced Fund 7,749,380 2,829,908 Total 116,309,461 79,061,318

Fair value measurements

IFRS 13 establishes a fair value hierarchy for inputs used in measuring fair values. The fair value hierarchy is categorised into three levels based on the inputs as follows:

Level 1 – Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly (as prices) or indirectly (derived from prices); and

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgement by the Investment Manager. The Investment Manager considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Investment Manager’s perceived risk of that instrument.


122


Fair value measurements (continued)

The following table summarises the inputs used to value the Company’s assets and liabilities measured at fair value on a recurring basis as of 31 December 2015:

Generali CEE Cash & Bond Fund 31 December 2015 Quoted prices in

active markets Significant other

observable inputs

Significant unobservable

inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 19,990,449 - 19,990,449 - Derivative financial assets 83,399 - 83,399 - 20,073,848 - 20,073,848 -

Generali CEE Cash & Bond Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 12,704,368 - 12,704,368 - Derivative financial liabilities (204,785) - (204,785) - 12,499,583 - 12,499,583 -

Generali CEE Corporate Bonds Fund 31 December 2015 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 20,791,446 - 20,791,446 - Derivative financial assets 229,185 - 229,185 -

21,020,631 - 21,020,631 -

Generali CEE Corporate Bonds Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 12,813,916 - 12,813,916 - Derivative financial liabilities (236,300) - (236,300) -

12,577,616 - 12,577,616 -

Generali CEE Global Brands Fund 31 December 2015 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 9,002,901 9,002,901 - - Derivative financial assets 94,557 - 94,557 - 9,097,458 9,002,901 94,557 -


123



Generali CEE Global Brands Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 16,380,022 16,380,022 - - Derivative financial liabilities (225,869) - (225,869) -

16,154,153 16,380,022 (225,869) -

Generali CEE New Economies Fund 31 December 2015 Quoted prices in


observable inputs



Generali CEE New Economies Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 14,798,394 14,798,394 - - Derivative financial liabilities (392,357) - (392,357) - 14,406,037 14,798,394 (392,357) -

Generali CEE Oil Industry & Energy Production Fund 31 December 2015

Quoted prices in active markets

Significant other observable inputs



Generali CEE Oil Industry & Energy Production Fund 31 December 2014

Quoted prices in active markets

Significant other observable inputs




124



Generali CEE Commodity Fund 31 December 2015 Quoted prices in


observable inputs



Generali CEE Commodity Fund 31 December 2014 Quoted prices in


observable inputs



Generali CEE Emerging Europe Fund 31 December 2015 Quoted prices in


observable inputs



28,774,527 28,785,831 (11,304) -

Generali CEE Emerging Europe Fund 31 December 2014 Quoted prices in


observable inputs



22,294,564 22,306,334 (11,770) -

Generali CEE Emerging Europe Bond Fund 31 December 2015 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 30,543,634 - 30,543,634 - Derivative financial assets 144,790 - 144,790 -

30,688,424 - 30,688,424 -


125



Generali CEE Emerging Europe Bond Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 28,559,435 - 28,559,435 - Derivative financial liabilities (77,618) - (77,618) -

28,481,817 - 28,481,817 -

Generali CEE Balanced Fund* 31 December 2015 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 9,537,591 3,623,133 5,914,458 - Derivative financial assets 114,836 - 114,836 - 9,652,427 3,623,133 6,029,294 -

Generali CEE Balanced Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 3,544,472 1,312,269 2,232,203 - Derivative financial liabilities (55,710) - (55,710) - 3,488,762 1,312,269 2,176,493 -

Generali CEE Dynamic Balanced Fund 31 December 2015 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 5,523,218 3,428,549 2,094,669 - Derivative financial assets 64,202 - 64,202 -

5,587,420 3,428,549 2,158,871 -

Generali CEE Dynamic Balanced Fund 31 December 2014 Quoted prices in


observable inputs


inputs (Level 1) (Level 2) (Level 3) EUR EUR EUR EUR Financial assets at fair value through profit or loss 2,962,535 1,844,123 1,118,412 - Derivative financial liabilities (47,840) - (47,840) -

2,914,695 1,844,123 1,070,572 -


126


Fair value hierarchy for the Company’s assets and l iabilities The following table analyses within the fair value hierarchy the Company’s assets and liabilities not measured at fair value at 31 December 2015 and 31 December 2014 but for which fair value is disclosed:

31 December 2015 Level 1 Level 2 Level 3

Generali CEE Cash & Bond Fund EUR EUR EUR EUR Assets Cash and cash equivalents 1,290,079 1,290,079 - - Other assets 83,114 - 83,114 -

Total assets 1,373,193 1,290,079 83,114 -

Liabilities Other liabilities 86,173 - 86,173 -

Total liabilities 86,173 - 86,173 -


Generali CEE Cash & Bond Fund EUR EUR EUR EUR Assets Cash and cash equivalents 711,740 711,740 - - Other assets 456,411 - 456,411 -

Total assets 1,168,151 711,740 456,411 -



31 December 2015 Le vel 1 Level 2 Level 3

Generali CEE Corporate Bonds Fund EUR EUR EUR EURAssets Cash and cash equivalents 1,434,030 1,434,030 - -Other assets 86,245 - 86,245 -

Total assets 1,520,275 1,434,030 86,245 -




Generali CEE Corporate Bonds Fund EUR EUR EUR EURAssets Cash and cash equivalents 822,194 822,194 - -Other assets 456,175 - 456,175 -

Total assets 1,278,369 822,194 456,175 -




127


Fair value measurements (continued) Fair value hierarchy for the Company’s assets and l iabilities (continued)


Generali CEE Global Brands Fund EUR EUR EUR EUR Assets Cash and cash equivalents 554,661 554,661 - - Other assets 11,294 - 11,294 - Total assets 565,955 554,661 11,294 - Liabilities Other liabilities 86,735 - 86,735 - Total liabilities 86,735 - 86,735 -


Generali CEE Global Brands Fund EUR EUR EUR EUR Assets Cash and cash equivalents 1,379,278 1,379,278 - - Other assets 26,470 - 26,470 - Total assets 1,405,748 1,379,278 26,470 - Liabilities Other liabilities 117,461 - 117,461 - Total liabilities 117,461 - 117,461 -


Generali CEE New Economies Fund EUR EUR EUR EUR Assets Cash and cash equivalents 486,850 486,850 - - Other assets 18,523 - 18,523 - Total assets 505,373 486,850 18,523 - Liabilities Other liabilities 113,960 - 113,960 - Total liabilities 113,960 - 113,960 -


Generali CEE New Economies Fund EUR EUR EUR EUR Assets Cash and cash equivalents 712,579 712,579 - - Other assets 16,365 - 16,365 - Total assets 728,944 712,579 16,365 - Liabilities Other liabilities 113,847 - 113,847 - Total liabilities 113,847 - 113,847 -


128



31 December 2015 Level 1 Level 2 Level 3 Generali CEE Oil Industry & Energy Production Fund EUR EUR EUR EUR Assets Cash and cash equivalents 187,392 187,392 - - Other assets 13,323 - 13,323 -

Total assets 200,715 187,392 13,323 - Liabilities Other liabilities 73,142 - 73,142 -


31 December 2014 Level 1 Level 2 Level 3 Generali CEE Oil Industry & Energy Production Fund EUR EUR EUR EUR Assets Cash and cash equivalents 308,922 308,922 - - Other assets 67,692 - 67,692 -

Total assets 376,614 308,922 67,692 -




Generali CEE Commodity Fund EUR EUR EUR EUR Assets Cash and cash equivalents 287,927 287,927 - - Other assets 10,979 - 10,979 -




Generali CEE Commodity Fund EUR EUR EUR EUR Assets Cash and cash equivalents 638,070 638,070 - - Other assets 8,065 - 8,065 -




129




Generali CEE Emerging Europe Fund EUR EUR EUR EUR Assets Cash and cash equivalents 1,923,185 1,923,185 - - Other assets 20,136 - 20,136 -

Total assets 1,943,321 1,923,185 20,136 - Liabilities Other liabilities 126,779 - 126,779 -



Generali CEE Emerging Europe Fund EUR EUR EUR EUR Assets Cash and cash equivalents 4,692,906 4,692,906 - - Other assets 58,105 - 58,105 -

Total assets 4,751,011 4,692,906 58,105 -




Generali CEE Emerging Europe Bond Fund EUR EUR EUR EURAssets Cash and cash equivalents 868,006 868,006 - -Other assets 2,247 - 2,247 -

Total assets 870,253 868,006 2,247 -




Generali CEE Emerging Europe Bond Fund EUR EUR EUR EURAssets Cash and cash equivalents 892,746 892,746 - -Other assets 8,131 - 8,131 -

Total assets 900,877 892,746 8,131 -




130




Generali CEE Balanced Fund* EUR EUR EUR EUR Assets Cash and cash equivalents 895,068 895,068 - - Other assets 65,489 - 65,489 - Total assets 960,557 895,068 65,489 - Liabilities Other liabilities 65,506 - 65,506 - Total liabilities 65,506 - 65,506 -


Generali CEE Balanced Fund* EUR EUR EUR EUR Assets Cash and cash equivalents 238,313 238,313 - - Other assets 247,380 - 247,380 - Total assets 485,693 238,313 247,380 - Liabilities Other liabilities 25,462 - 25,462 - Total liabilities 25,462 - 25,462 -


Generali CEE Dynamic Balanced Fund* EUR EUR EUR EUR Assets Cash and cash equivalents 515,065 515,065 - - Other assets 32,312 - 32,312 - Total assets 547,377 515,065 32,312 - Liabilities Other liabilities 44,350 - 44,350 - Total liabilities 44,350 - 44,350 -


Generali CEE Dynamic Balanced Fund* EUR EUR EUR EUR Assets Cash and cash equivalents 173,753 173,753 - - Other assets 96,391 - 96,391 - Total assets 270,144 173,753 96,391 - Liabilities Other liabilities 24,643 - 24,643 - Total liabilities 24,643 - 24,643 -

* Launched 3 January 2014.

10. Cash and cash equivalents

As at 31 December 2015 all cash balances were held with RBC Investor Services Bank S.A..


131


11. Segregated liability

The Company has segregated liability between its Funds and accordingly any liability incurred on behalf of or attributable to any Fund shall be discharged solely out of the assets of that Fund.

12. Net gain/(loss) on financial assets and liabili ties at fair value through profit or loss


Fund


Fund

Generali CEECorporate

Bonds Fund

Generali CEECorporate

Bonds Fund

EUR EUR EUR EUR

31 December 2015 31 December 2014 31 December 2015 31 December 201 4

Net realised gain on sale of investments 1,198,728 206,608 1,878,366 388,948Net change in unrealised gain on investments 61,596 764,119 1,427,922 376,019Net realised loss on forward foreign exchange contracts (1,025,020) (622,815) (2,422,166) (1,067,177)Net change in unrealised gain/(loss) on forward foreign exchange contracts 288,185 (272,642) 465,484 (316,308)

Net currency gain 69,454 54,789 508,419 81,486Net gain/(loss) on financial assets at fair value through profit or loss 592,943 130,059 1,858,025 (537,032)


Fund


Fund

Generali CEENew Economies

Fund


Fund

EUR EUR EUR EUR

31 December 2015 31 December 201 4 31 December 2015 31 December 2014

Net realised gain/(loss) on sale of investments 3,940,468 1,034,131 743,953 (120,165)Net change in unrealised (loss)/gain on investments (2,314,954) 1,323,707 (1,969,959) 2,316,210Net realised loss on forward foreign exchange contracts (1,660,825) (1,093,230) (2,618,679) (1,516,813)Net change in unrealised gain/(loss) on forward foreign exchange contracts 320,425 (379,151) 535,825 (417,833)

Net currency gain/(loss) 386,904 56,630 682,001 313,650

Net gain/(loss) on financial assets at fair value through profit or loss 672,018 942,087 (2,626,859) 575,049


Production Fund


Production Fund


Fund


Fund

EUR EUR EUR EUR


Net realised gain/(loss) on sale of investments 453,697 243,847 (383,776) (348,082)Net change in unrealised (loss)/gain on investments (1,269,167) 192,440 (925,187) 14,611Net realised loss on forward foreign exchange contracts (1,144,926) (857,304) (1,220,153) (759,524)Net change in unrealised gain/(loss) on forward foreign exchange contracts 261,631 (207,190) 178,554 (290,061)

Net currency gain 233,940 165,731 275,513 121,743Net (loss)/gain on financial assets at fair value through profit or loss (1,464,8 25) (462,476) (2,075,049) (1,261,313)


132

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 12. Net gain/(loss) on financial assets and liabili ties at fair value through profit or loss (continue d)


Fund


Fund


Bond Fund


Bond Fund

EUR EUR EUR EUR


Net realised (loss)/gain on sale of investments (1,090,936) 33,310 (44,588) 569,834Net change in unrealised gain/(loss) on investments 21,877 (1,064,942) 2,400,816 (1,151,144)Net realised gain/(loss) on forward foreign exchange contracts 16,345 (8,489) (111,871) (381,686)Net change in unrealised gain/(loss) on forward foreign exchange contracts 466 (24,919) 222,408 (71,522)

Net currency gain/(loss) 123,094 7,833 (14,561) (179,143)Net (loss)/gain on financial assets at fair value through profit or loss (929,154) (1,057,207) 2,452,204 (1,213,661)

Generali CEE


Balanced Fund*

Generali CEEDynamic

Balanced Fund*

Generali CEEDynamic

Balanced Fund*

EUR EUR EUR EUR


Net realised gain on sale of investments 504,787 71,450 332,976 107,713Net change in unrealised gain/(loss) on investments 86,728 259,963 (82,853) 315,668Net realised loss on forward foreign exchange contracts (828,529) (193,087) (530,299) (214,667)Net change in unrealised gain/(loss) on forward foreign exchange contracts 170,546 (55,710) 112,042 (47,840)

Net currency gain/(loss) 258,320 2,022 137,064 (645)Net gain/(loss) on financial assets at fair value through profit or loss 1 91,852 84,638 (31,070) 160,229

* Launched 3 January 2014. Total Total

EUR EUR


Net realised gain on sale of investments 7,533,675 2,187,594Net change in unrealised (loss)/gain on investments (2,563,181) 3,346,651Net realised loss on forward foreign exchange contracts (11,546,123) (6,714,792)Net change in unrealised gain/(loss) on forward foreign exchange contracts 2,555,566 (2,083,176)

Net currency gain 2,660,148 624,096Net (loss) on financial assets at fair value through profit or loss (1,359,915) (2,639,627)


133

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 13. Soft commissions

There were no soft commission arrangements in place during the financial year (31 December 2014: None).

14. Distributions There were no distributions to holders of redeemable participating shares paid by the Company during the financial year ended 31 December 2015.

15. Net Asset Value The Net Asset Value per share of the Funds for subscriptions and redemptions is calculated by valuing each Fund’s investments at last traded prices. Statement of Net Assets for Current and Prior Years are as follows:

Generali CEE Cash & Bond Fund 31 December 2015 31 December 2014 31 December 2013

Net Assets for shareholder dealing/prospectus EUR 21,360,868 EUR 13,416,534 EUR 10,533,838

Net Asset Value per share ‘A’ EUR EUR 11.17 EUR 11.02 EUR 10.96

Net Asset Value per share ‘A’ CZK CZK 262.65 CZK 261.36 CZK 261.95

Net Asset Value per share ‘A’ PLN PLN 50.83 PLN 49.39 PLN 48.11

Generali CEE Corporate Bonds Fund 31 December 2015 31 December 2014 31 December 2013



Net Asset Value per share ‘A’ CZK CZK 272.92 CZK 258.58 -


Net Asset Value per share ‘B’ CZK CZK 261.84 CZK 247.50 CZK 269.34

Net Asset Value per share ‘B’ EUR EUR 10.86 EUR 10.19 EUR 11.11

Net Asset Value per share ‘B’ PLN PLN 50.75 PLN 47.02 PLN 51.14

Generali CEE Global Brands Fund 31 December 2015 31 December 2014 31 December 2013





Generali CEE New Economies Fund 31 December 2015 31 December 2014 31 December 2013





134


15. Net Asset Value (continued)

Generali CEE Oil Industry & Energy Production Fund 31 December 2015 31 December 2014 31 December 2013




Generali CEE Commodity Fund 31 December 2015 31 December 2014 31 December 2013





Generali CEE Emerging Europe Fund 31 December 2015 31 December 2014 31 December 2013





Net Asset Value per share ‘I’ EUR EUR 8.65 EUR 8.76 EUR 8.89

Net Asset Value per share ‘Y’ EUR EUR 9.46 EUR 9.59 EUR 9.73

Generali CEE Emerging Europe Bond Fund 31 December 2015 31 December 2014 31 December 2013




Net Asset Value per share ‘A’ PLN PLN 44.10 - -

Net Asset Value per share ‘Y’ EUR EUR 10.16 EUR 9.50 EUR 9.96

Generali CEE Balanced Fund * 31 December 2015 31 December 2014 31 December 2013

Net Assets for shareholder dealing/prospectus EUR 10,547,478 EUR 3,959,795 -

Net Asset Value per share ‘A’ EUR EUR 9.92 EUR 9.98 -


Net Asset Value per share ‘A’ PLN PLN 42.98 PLN 42.72 -

Generali CEE Dynamic Balanced Fund * 31 December 2015 31 December 2014 31 December 2013

Net Assets for shareholder dealing/prospectus EUR 6,090,447 EUR 3,166,134 -

Net Asset Value per share ‘A’ EUR EUR 9.93 EUR 10.20 -


Net Asset Value per share ‘A’ PLN PLN 42.77 PLN 43.45 - *Launched on 3 January 2014.


135


16. Foreign exchange translation

The exchange rates as at 31 December 2015, which were used to convert assets and liabilities denominated in foreign currencies, were as follows: CZK 27.021716 HRK 7.640691 RON 4.521502 TRY 3.170744 GBP 0.737024 HUF 316.005353 RUB 79.338300 USD 1.086300 HKD 8.418972 PLN 4.289742 SEK 9.158124 The exchange rates as at 31 December 2014, which were used to convert assets and liabilities denominated in foreign currencies were as follows: CZK 27.715300 PLN 4.298090 SEK 9.472609 GBP 0.776046 RON 4.483659 TRY 2.828793 HUF 315.750333 RUB 72.601548 USD 1.210050

17. Significant events during the financial year The Company changed from a self-managed company to a managed company as of 31 July 2015. The new Manager of the Company is ČP INVEST investiční společnost, a.s. which is also the Global Distributor and Promoter. The Generali CEE Emerging Europe Bond share class A PLN was launched on 11 January 2015. Mr. Patrik Hudec was appointed as a Director to the Board on 13th November 2015. Mr. Martin Brož was appointed as a Director to the Board on 24th November 2015. One redeemable non-participating share of no par value in Generali Invest CEE was transferred from Alexandra Hajkova to Generali CEE Holding B.V. as of 9 December 2015. The new holder of this non-participating share holds the share as nominee of and in trust for ČP INVEST investiční společnost, a.s..

18. Post balance sheet events

ČP INVEST investiční společnost, a.s. merged with Generali Investments CEE a.s., the Investment Manager of the company, effective 1 January 2016 and the name of the manager has changed to Generali Investments CEE, investiční společnost, a.s.. In addition to the Merger, there are related changes to the names of the sub-funds for the Company (the “Sub-Funds ”) as set out below:

(i) Generali CEE Cash & Bond Fund has changed to Premium Conservative Fund, Generali Invest CEE plc;

(ii) Generali CEE Corporate Bonds Fund has changed to Corporate Bonds Fund, Generali Invest CEE plc;

(iii) Generali CEE Global Brands Fund has changed to Global Equity Fund, Generali Invest CEE plc;

(iv) Generali CEE New Economies Fund has changed to New Economies Fund, Generali Invest CEE plc;

(v) Generali CEE Oil Industry & Energy Production Fund has changed to Oil and Energy Industry Fund, Generali Invest CEE plc;

(vi) Generali CEE Commodity Fund has changed to Commodity Fund, Generali Invest CEE plc; (vii) Generali CEE Emerging Europe Fund has changed to Emerging Europe Fund, Generali Invest CEE plc; (viii) Generali CEE Emerging Europe Bond Fund has changed to Emerging Europe Bond Fund, Generali Invest

CEE plc;


136

NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2015 (continued) 18. Post balance sheet events (continued)

(ix) Generali CEE Balanced Fund has changed to Premium Balanced Fund, Generali Invest CEE plc; and (x) Generali CEE Dynamic Balanced Fund has changed to Dynamic Balanced Fund, Generali Invest CEE plc. Mr. Karel Novák resigned as a Director from the Board as at 28 January 2016. Mr. Radek Moc resigned as a Director from the Board on 11 April 2016. The Prospectus and Supplements have been amended to take into account a number of changes for structure, marketing and operational reasons, in line with the Company’s outlook. On 11 January 2016, the Premium Dynamic Fund, Generali Invest CEE plc was launched. There were no other significant events since the financial year ended 31 December 2015. 19. Date of approval

The financial statements were approved by the Directors on 11 April 2016.


137

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Cash & Bond Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets Bulgaria Government International Bond 4.25% 09/07/2017 2,000,000 2,215,080 10.38 Romanian Government International Bond 5.25% 17/06/2016 1,950,000 2,143,646 10.04 Turkey Government International Bond 5.5% 16/02/2017 1,350,000 1,491,041 6.99 Hungary Government International Bond 4.375% 04/07/2017 1,300,000 1,434,474 6.72 Hungary Government International Bond 3.5% 18/07/2016 1,250,000 1,327,954 6.22 PGNIG Finance AB 4% 14/02/2017 EMTN 1,100,000 1,196,564 5.61 MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 800,000 883,460 4.14 Turkey Government International Bond 7% 26/09/2016 900,000 868,463 4.07 Erste Group Bank AG 3.375% 28/03/2017 EMTN 800,000 846,407 3.97 Goldman Sachs Group Inc 0.591% 29/05/2020 EMTN 800,000 796,072 3.73 MOL Hungarian Oil & Gas PLC 3.875% 05/10/2015 650,000 668,999 3.13 Bank Ochrony Srodowiska Finance AB 6% 11/05/2016 600,000 668,856 3.13 Citigroup Inc 1.327% 10/02/2019 600,000 597,707 2.80 MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 500,000 544,603 2.55 UniCredit SpA 4.875% 07/03/2017 EMTN 500,000 541,859 2.54 Morgan Stanley 0.609% 19/11/2019 EMTN 500,000 502,025 2.35 Export Credit Bank of Turkey 5.375% 04/11/2016 500,000 490,780 2.30 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 500,000 481,770 2.26 Turkiye Is Bankasi 5.1% 01/02/2016 500,000 480,677 2.25 Sberbank of Russia Via SB Capital SA 4.95% 07/02/2017 500,000 460,670 2.16

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Bulgaria Government International Bond 8.25% 15/01/2015 1,300,000 1,168,177 8.07 Development Bank of Kazakhstan JSC 5.5% 20/12/2015 EMTN 1,063,000 1,007,176 6.96 mFinance France SA 2.75% 12/10/2015 EMTN 1,000,000 1,000,000 6.91 City of Bucharest Romania 4.125% 22/06/2015 900,000 900,000 6.22 Turkey Government International Bond 7.25% 15/03/2015 800,000 787,910 5.44 MOL Hungarian Oil & Gas PLC 3.875% 05/10/2015 750,000 779,063 5.38 Kazatomprom Natsionalnaya Atomnaya Kompaniya AO 6.25% 20/05/2015 835,000 775,585 5.36 Hungary Government International Bond 4.75% 03/02/2015 800,000 715,378 4.94 Alfa MTN Issuance Ltd 8% 18/03/2015 EMTN 750,000 704,655 4.87 Powszechna Kasa Oszczednosci Bank Polski SA Via PKO Finance AB 3.733% 21/10/2015 EMTN 700,000 700,000 4.83 Gazprombank OJSC Via GPB Eurobond Finance PLC 6.5% 23/09/2015 750,000 672,948 4.65 KazMunayGas National Co JSC 11.75% 23/01/2015 EMTN 700,000 658,807 4.55 Bank Ochrony Srodowiska Finance AB 6% 11/05/2016 600,000 633,286 4.37 Romanian Government International Bond 5.25% 17/06/2016 600,000 630,477 4.35 Home Credit BV 0% 22/09/2015 EMTN 15,950,000 588,446 4.06 Croatia Government International Bond 6.5% 05/01/2015 550,000 585,750 4.05 VTB Bank OJSC Via VTB Capital SA 6.465% 04/03/2015 600,000 542,103 3.74 Sberbank of Russia Via SB Capital SA 5.499% 07/07/2015 400,000 375,838 2.60 Hungary Government International Bond 4.375% 04/07/2017 300,000 332,131 2.29 International Personal Finance PLC 11.5% 06/08/2015 EMTN 250,000 279,339 1.93


138

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Corporate Bonds Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets ALROSA Finance SA 7.75% 03/11/2020 1,400,000 1,276,882 5.85 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 850,000 778,572 3.57 Bank Otkritie Financial Corp OJSC via OFCB Capital PLC 7.25% 25/04/2018 800,000 727,446 3.33 Turkiye Is Bankasi 5.1% 01/02/2016 700,000 670,201 3.07 KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 700,000 661,879 3.03 Russian Railways via RZD Capital PLC 5.739% 03/04/2017 EMTN 700,000 607,046 2.78 Erste Group Bank AG 0.758% 19/07/2017 EMTN 600,000 576,042 2.64 MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 500,000 557,017 2.55 Hrvatska Elektroprivreda 6% 09/11/2017 600,000 543,952 2.49 Synthos Finance AB 4% 30/09/2021 500,000 505,478 2.32 Development Bank of Kazakhstan JSC 4.125% 10/12/2022 600,000 491,072 2.25 Export Credit Bank of Turkey 5.375% 04/11/2016 500,000 488,107 2.24 Turkiye Halk Bankasi AS 4.875% 19/07/2017 500,000 478,308 2.19 Gazprombank OJSC Via GPB Eurobond Finance PLC 3.984% 30/10/2018 500,000 476,994 2.19 Yapi ve Kredi Bankasi AS 5.25% 03/12/2018 500,000 475,103 2.18 Alfa Bank AO Via Alfa Bond Issuance PLC 7.875% 25/09/2017 500,000 463,921 2.13 Intergas Finance BV 6.375% 14/05/2017 500,000 459,259 2.10 Turkiye Is Bankasi 3.75% 10/10/2018 500,000 439,806 2.01 Turkiye Garanti Bankasi AS 4.75% 17/10/2019 EMTN 450,000 419,109 1.92 Croatia Government International Bond 6.75% 05/11/2019 400,000 396,102 1.81

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Vimpel Communications OJSC Via UBS Luxembourg SA 8.25% 23/05/2016 950,000 950,702 5.89 Development Bank of Kazakhstan JSC 5.5% 20/12/2015 EMTN 900,000 842,860 5.23 SOHO China Ltd 5.75% 07/11/2017 800,000 758,351 4.70 Kazatomprom Natsionalnaya Atomnaya Kompaniya AO 6.25% 20/05/2015 800,000 743,076 4.61 Shimao Property Holdings Ltd 11% 08/03/2018 600,000 613,175 3.80 Gazprombank OJSC Via GPB Eurobond Finance PLC 6.5% 23/09/2015 670,000 597,499 3.70 Hrvatska Elektroprivreda 6% 09/11/2017 600,000 575,592 3.57 ALROSA Finance SA 7.75% 03/11/2020 600,000 571,252 3.54 MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 500,000 563,434 3.49 OTP Bank PLC 5.27% 19/09/2016 EMTN 500,000 517,481 3.21 Severstal OAO Via Steel Capital SA 6.25% 26/07/2016 500,000 474,862 2.94 Turkiye Is Bankasi 5.1% 01/02/2016 500,000 455,873 2.83 Fiat Chrysler Finance Europe 6.375% 01/04/2016 EMTN 400,000 444,392 2.76 MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 400,000 441,517 2.74 Intergas Finance BV 6.375% 14/05/2017 454,000 423,634 2.63 Export Credit Bank of Turkey 5.375% 04/11/2016 400,000 377,322 2.34 MMC Norilsk Nickel OJSC via MMC Finance Ltd 4.375% 30/04/2018 400,000 365,561 2.27 OTP Bank PLC 0.631% 04/03/2015 350,000 350,552 2.17 Fiat Chrysler Finance Europe 7.75% 17/10/2016 EMTN 300,000 339,743 2.11 Gazprombank OJSC Via GPB Eurobond Finance PLC 5.625% 17/05/2017 EMTN 350,000 319,001 1.98


139

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Global Brands Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets VEB-Leasing OAO via VEB Leasing Invest Ltd 5.125% 27/05/2016 200,000 185,004 7.61 AXA SA 7,800 160,989 6.62 Sony Corp 7,000 154,509 6.36 L'Oreal SA 800 138,712 5.71 Volkswagen AG 800 128,402 5.28 Intel Corp 3,800 107,042 4.40 Cisco Systems Inc 3,900 98,080 4.04 Koninklijke Philips NV 4,200 93,121 3.83 Industria de Diseno Textil SA 3,700 88,762 3.65 LVMH Moet Hennessy Louis Vuitton SE 550 88,622 3.65 Hewlett Packard Enterprise Co 7,200 83,304 3.43 HP Inc 2,600 79,974 3.29 Microsoft Corp 2,000 79,929 3.29 JPMorgan Chase & Co 1,300 71,658 2.95 Goldman Sachs Group Inc 350 59,221 2.44 Allianz SE 400 58,570 2.41 HP Inc 5,000 56,019 2.30 Nestle SA 800 53,245 2.19 PayPal Holdings Inc 3,300 52,097 2.14 Toyota Motor Corp 400 49,541 2.04

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Sony Corp 18,200 407,715 3.57 Hermes International 1,251 382,413 3.35 Hennes & Mauritz AB 9,300 328,523 2.87 NIKE Inc 3,000 259,020 2.27 Oracle Corp 6,900 258,693 2.26 Cisco Systems Inc 10,700 257,807 2.26 Microsoft Corp 6,600 254,354 2.23 Intel Corp 8,300 250,832 2.19 American Express Co 3,550 250,149 2.19 Apple Inc 2,500 245,008 2.14 Volkswagen AG 1,150 242,133 2.12 Bayerische Motoren Werke AG 2,400 241,233 2.11 Walt Disney Co 2,800 240,227 2.10 eBay Inc 5,200 239,270 2.09 JPMorgan Chase & Co 4,600 237,288 2.08 Samsung Electronics Co Ltd 430 235,327 2.06 Anheuser-Busch InBev SA 2,150 228,889 2.00 Accenture PLC 1,600 225,201 1.97 Coca-Cola Co 5,900 221,883 1.94 Accenture PLC 2,900 221,875 1.94


140

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31December 2015 Generali CEE New Economies Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets Korea Electric Power Corp 7000 134,511 13.15 Lyxor ETF Turkey EURO 2000 93,037 9.10 Tata Motors Ltd 3100 79,281 7.75 LG Display Co Ltd 8000 78,542 7.68 KB Financial Group Inc 2400 72,213 7.06 Komercni banka as 300 56,630 5.54 POSCO 1000 52,463 5.13 CEZ AS 2300 48,726 4.76 China Petroleum & Chemical Corp 600 48,267 4.72 Siliconware Precision Industries Co Ltd 7000 46,548 4.55 SK Telecom Co Ltd 2000 45,908 4.49 Itau Unibanco Holding SA 7923 45,469 4.45 HDFC Bank Ltd 890 45,033 4.40 United Microelectronics Corp 20000 36,793 3.60 Sberbank of Russia PJSC 8000 31,799 3.11 Lenovo Group Ltd 30000 29,712 2.90 ICICI Bank Ltd 3500 26,713 2.61 Samsung Electronics Co Ltd 60 25,776 2.52 Gazprom PAO 6000 25,407 2.48

Sales

Security Name Quantity Proceeds (EUR) % Net Assets HDFC Bank Ltd 5,750 321,379 13.26 Teva Pharmaceutical Industries Ltd 6,100 297,617 12.28 Tata Motors Ltd 5,700 238,442 9.84 ICICI Bank Ltd 21,500 218,972 9.03 Banco Bradesco SA 19,000 209,901 8.66 Itau Unibanco Holding SA 11,000 125,060 5.16 LG Display Co Ltd 8,300 116,561 4.81 CNOOC Ltd 950 108,632 4.48 Infosys Ltd 4,400 85,910 3.54 Sinopec Shanghai Petrochemical Co Ltd 2,500 84,295 3.48 Cia Brasileira de Distribuicao 2,800 83,352 3.44 AU Optronics Corp 16,000 77,264 3.19 Novatek OAO 1,000 63,983 2.64 Taiwan Semiconductor Manufacturing Co Ltd 3,000 63,910 2.64 Southern Copper Corp 2,000 48,932 2.02 Hyundai Motor Co 1,000 47,482 1.96 Guangshen Railway Co Ltd 2,000 44,450 1.83 CEZ AS 2,200 44,185 1.82 Sberbank of Russia PJSC 8,000 34,805 1.44 Sibanye Gold Ltd 3,250 31,200 1.29


141

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Oil Industry & Energy Production Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets RWE AG 5,300 66,750 15.99 Energy Transfer Partners LP 1,000 49,010 11.74 E.ON SE 4,839 41,567 9.96 Chevron Corp 400 36,408 8.72 CEZ AS 1,700 36,015 8.63 China Petroleum & Chemical Corp 400 32,178 7.71 Royal Dutch Shell PLC 1,037 27,552 6.60 Exelon Corp 1,000 26,958 6.46 Gazprom PAO 6,000 25,407 6.09 Duke Energy Corp 400 24,643 5.90 Gas Natural SDG SA 1,200 23,940 5.73 Electricite de France SA 1,300 22,044 5.28 TOTAL SA 261 5,002 1.20

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Baker Hughes Inc 4,500 272,037 11.78 Exxon Mobil Corp 2,550 196,438 8.51 Valero Energy Corp 3,250 176,002 7.62 Schlumberger Ltd 2,100 155,802 6.75 Anadarko Petroleum Corp 2,250 147,838 6.40 Royal Dutch Shell PLC 4,500 120,341 5.21 Duke Energy Corp 1,600 120,255 5.21 Chevron Corp 1,000 94,142 4.08 Occidental Petroleum Corp 1,300 88,713 3.84 Verbund AG 5,500 85,655 3.71 Devon Energy Corp 1,650 77,667 3.36 CNOOC Ltd 580 66,323 2.87 Southern Co 1,400 62,137 2.69 Dominion Resources Inc/VA 900 60,895 2.64 Technip SA 1,200 59,720 2.59 Nabors Industries Ltd 6,000 52,624 2.28 ConocoPhillips 900 52,268 2.26 Apache Corp 900 50,816 2.20 Rowan Cos Plc 2,300 46,133 2.00 EOG Resources Inc 600 45,269 1.96


142

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Commodity Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets S&P GSCI Capped Component 35/20 THEAM Easy UCITS ETF Class A USD Unit

22,000 571,443 13.40 LYXOR ETF Commodities Thomson Reuters/ Jefferies CRB TR 30,000 485,140 11.38 ETFS WTI 2mth Oil Securities 21,000 413,759 9.71 db x-trackers DBLCI - OY Balanced UCITS ETF - 2C 15,000 297,538 6.98 ELEMENTS Linked to the Rogers International Commodity Indexes - Energy To Return 80,000 231,681 5.43 ETFS Longer Dated Agriculture 24,000 209,482 4.91 Amundi ETF Commodities S&P Gsci Metals UCITS ETF C 1,000 192,806 4.52 RBS Market Access Rogers International Commodity Indexes UCITS ETF 8,721 183,836 4.31 db Physical Palladium ETC 2,500 168,142 3.94 db Physical Gold ETC 1,600 167,743 3.93 iShares Physical Platinum ETC 10,000 155,759 3.65 Source Physical Palladium P-ETC 2,500 148,002 3.47 ETFS Coffee 90,000 141,603 3.32 ETFS Physical Palladium 3,000 138,948 3.26

RBS Market Access RICI Agriculture Indexes UCITS ETF 1,200 104,873 2.46 db Physical Platinum ETC 1,000 104,027 2.44 ETFS Industrial Metals 10,500 91,390 2.14 db Physical Rhodium ETC 1,110 90,381 2.12 ETFS Copper 3,400 78,080 1.83 ETFS Nickel 5,000 67,954 1.59

Sales

Security Name Quantity Proceeds (EUR) % Net Assets LYXOR ETF Commodities Thomson Reuters/ Jefferies CRB TR 28,500 465,493 13.74 ETFS Longer Dated Agriculture 51,100 445,162 13.14 db x-trackers DBLCI - OY Balanced UCITS ETF - 1C EUR Hedged 15,000 263,894 7.79 ELEMENTS Linked to the Rogers International Commodity Indexes - Energy To Return 85,000 255,088 7.53 S&P GSCI Capped Component 35/20 THEAM Easy UCITS ETF Class A USD Unit 9,000 238,032 7.03 ETFS Physical Palladium 4,200 219,158 6.47 db Physical Rhodium ETC 2,190 189,098 5.58 Source Physical Palladium P-ETC 3,000 181,567 5.36 iPath GSCI Total Return Indexes ETN 12,000 181,444 5.36 ETFS WTI 2mth Oil Securities 7,000 140,129 4.14 ETFS Copper 5,000 127,492 3.76 db Physical Gold ETC 1,000 107,925 3.19 db S&P GSCI Industrial Metals ETC 1,500 84,598 2.50 iShares Physical Platinum ETC 5,000 77,439 2.29 ETFS Coffee 45,000 73,410 2.17 Source Physical Silver P-ETC 4,000 60,930 1.80 ELEMENTS Linked to the Rogers International Commodity Indexes - Metals Tot Return 8,000 57,929 1.71 ETFS Longer Dated Natural Gas 21,000 55,525 1.64 ETFS Physical Platinum 500 50,646 1.49 ETFS All Commodities 5,500 50,309 1.48


143

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Emerging Europe Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets Sberbank of Russia PJSC 202,000 850,724 7.25 Komercni banka as 4,270 814,536 6.94 Atrium European Real Estate Ltd 165,000 689,535 5.87 Powszechny Zaklad Ubezpieczen SA 48,500 628,128 5.35 KGHM Polska Miedz SA 21,000 603,581 5.14 Turkiye Garanti Bankasi AS 200,000 577,211 4.92 PGE Polska Grupa Energetyczna SA 127,000 547,241 4.66 Gazprom PAO 100,626 429,024 3.65 Hrvatski Telekom dd 22,697 426,410 3.63 Rosneft OAO 130,000 403,757 3.44 Fondul Proprietatea SA/Fund 2,539,040 378,651 3.23 Magyar Telekom Telecommunications PLC 276,010 351,966 3.00 Erste Group Bank AG 14,500 343,371 2.92 Powszechna Kasa Oszczednosci Bank Polski SA 40,790 331,436 2.82 CA Immobilien Anlagen AG 19,000 312,585 2.66 Bank Millennium SA 180,000 302,158 2.57 Electrica SA 100,000 287,422 2.45 Bank Zachodni WBK SA 3,200 265,856 2.26 Vienna Insurance Group AG Wiener Versicherung Gruppe 8,351 262,484 2.24 UNIWHEELS AG 9,500 255,887 2.18

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Powszechny Zaklad Ubezpieczen SA 9,493 973,066 23.30 Sberbank of Russia PJSC 130,000 698,151 16.72 Raiffeisen Bank International AG 33,000 443,659 10.62 KGHM Polska Miedz SA 21,000 392,747 9.41 Banca Transilvania 445,075 204,421 4.90 Integer.pl SA 4,400 195,005 4.67 Polski Koncern Naftowy ORLEN SA 12,273 174,279 4.17 LPP SA 85 153,709 3.68 OTP Bank PLC 8,400 147,964 3.54 Bank Millennium SA 101,139 133,970 3.21 Orange Polska SA 65,000 128,237 3.07 Richter Gedeon Nyrt 9,800 126,963 3.04 Lubelski Wegiel Bogdanka SA 5,079 109,046 2.61 Gazprom PAO 50,000 106,258 2.54 Getin Noble Bank SA 390,020 91,289 2.19 Sberbank of Russia PJSC 85,000 87,992 2.11 Evraz PLC 2,850 8,200 0.20 Globe Trade Centre SA 34,846 912 0.02


144

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Emerging Europe Bond Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets Hungary Government Bond 3.5% 24/06/2020 480,000,000 1,642,760 16.15 Turkey Government Bond 8.8% 14/11/2018 4,000,000 1,256,174 12.35 Poland Government Bond 3.25% 25/07/2025 5,000,000 1,241,826 12.21 Romania Government Bond 4.75% 24/02/2025 5,000,000 1,185,501 11.65 Hungary Government Bond 5.5% 24/06/2025 255,000,000 958,888 9.43 Poland Government Bond 2.5% 25/07/2018 3,700,000 888,258 8.73 Poland Government Bond 3.75% 25/04/2018 2,600,000 653,241 6.42 OTP Bank PLC 0.631% 04/03/2015 650,000 649,055 6.38 Turkey Government International Bond 5.125% 18/05/2020 500,000 595,207 5.85 Poland Government Bond 5.5% 25/10/2019 2,000,000 531,967 5.23 Bulgaria Government International Bond 2% 26/03/2022 EMTN 325,000 326,061 3.21 Russian Federal Bond - OFZ 8.15% 03/02/2027 21,000,000 243,148 2.39

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Romania Government Bond 5.9% 26/07/2017 5,000,000 1,261,190 14.15 Romania Government Bond 5.75% 27/01/2016 4,400,000 1,030,910 11.57 Russian Federal Bond - OFZ 7% 16/08/2023 76,000,000 862,396 9.68 Russian Federal Bond - OFZ 7.35% 20/01/2016 61,000,000 814,886 9.14 Romanian Government International Bond 5% 18/03/2015 800,000 800,000 8.98 Hungary Government International Bond 5.75% 11/06/2018 600,000 678,857 7.62 OTP Bank PLC 0.631% 04/03/2015 650,000 651,025 7.31 Hungary Government Bond 5.5% 22/12/2016 175,000,000 626,188 7.03 City of Bucharest Romania 4.125% 22/06/2015 600,000 600,000 6.73 Russian Federal Bond - OFZ 8.15% 03/02/2027 42,000,000 590,703 6.63 Slovakia Government International Bond 4.375% 21/01/2015 EMTN 500,000 500,000 5.61 Hungary Government Bond 6.75% 24/02/2017 80,000,000 283,545 3.18 Russian Federal Bond - OFZ 7.6% 14/04/2021 17,500,000 212,257 2.38


145

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Balanced Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets SOURCE MSCI EMERGING MARKETS UCITS ETF 12,100 425,823 3.78 Turkey Government International Bond 7.5% 14/07/2017 400,000 401,135 3.56 Export Credit Bank of Turkey 5.375% 04/11/2016 400,000 395,068 3.50 Shimao Property Holdings Ltd 6.625% 14/01/2020 400,000 381,714 3.39 KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 400,000 377,245 3.35 Development Bank of Kazakhstan JSC 4.125% 10/12/2022 400,000 332,806 2.95 International Personal Finance PLC 5.75% 07/04/2021 EMTN 300,000 306,836 2.72 Erste Group Bank AG 0.758% 19/07/2017 EMTN 300,000 289,114 2.56 Halyk Savings Bank of Kazakhstan JSC 7.25% 03/05/2017 300,000 274,716 2.44 Intergas Finance BV 6.375% 14/05/2017 300,000 270,732 2.40 Synthos Finance AB 4% 30/09/2021 250,000 249,798 2.22 MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 200,000 221,733 1.97 MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 200,000 220,033 1.95 KazMunayGas National Co JSC 9.125% 02/07/2018 EMTN 200,000 206,335 1.83 MFB Magyar Fejlesztesi Bank Zrt 6.25% 21/10/2020 200,000 202,072 1.79 Croatia Government International Bond 6.75% 05/11/2019 200,000 197,925 1.76 Yapi ve Kredi Bankasi AS 6.75% 08/02/2017 200,000 193,954 1.72 ALROSA Finance SA 7.75% 03/11/2020 200,000 192,287 1.71 Croatia Government International Bond 6.25% 27/04/2017 200,000 190,221 1.69 JBS Investments GmbH 7.75% 28/10/2020 200,000 189,962 1.68

Sales

Security Name Quantity Proceeds (EUR) % Net Assets Turkey Government International Bond 7.5% 14/07/2017 450,000 459,345 8.23 MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 420,000 441,631 7.91 Development Bank of Kazakhstan JSC 5.5% 20/12/2015 EMTN 400,000 380,877 6.83 SOHO China Ltd 5.75% 07/11/2017 400,000 379,175 6.79 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 300,000 291,733 5.23 Erste Group Bank AG 0.758% 19/07/2017 EMTN 250,000 245,969 4.41 Romanian Government International Bond 4.875% 07/11/2019 EMTN 200,000 235,767 4.23 MOL Hungarian Oil & Gas PLC 5.875% 20/04/2017 EMTN 200,000 225,386 4.04 Croatia Government International Bond 5.875% 09/07/2018 200,000 222,722 3.99 MFB Magyar Fejlesztesi Bank Zrt 6.25% 21/10/2020 200,000 205,573 3.68 International Personal Finance PLC 5.75% 07/04/2021 EMTN 200,000 204,703 3.67 Hrvatska Elektroprivreda 6% 09/11/2017 200,000 191,864 3.44 JBS Finance II Ltd 8.25% 29/01/2018 200,000 189,484 3.40 Kazatomprom Natsionalnaya Atomnaya Kompaniya AO 6.25% 20/05/2015 200,000 185,769 3.33 Shimao Property Holdings Ltd 6.625% 14/01/2020 200,000 183,930 3.30 Eurasian Development Bank 5% 26/09/2020 200,000 174,729 3.13 Fiat Chrysler Finance Europe 6.375% 01/04/2016 EMTN 100,000 110,490 1.98 Gazprom OAO Via Gaz Capital SA 5.136% 22/03/2017 100,000 106,752 1.91 KazMunayGas National Co JSC 9.125% 02/07/2018 EMTN 100,000 103,993 1.86 OTP Bank PLC 5.27% 19/09/2016 EMTN 100,000 103,624 1.86

146

SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES for the f inancial year ended 31 December 2015 Generali CEE Dynamic Balanced Fund (unaudited)

Purchases

Security Name Quantity Cost (EUR) % Net Assets SOURCE MSCI EMERGING MARKETS UCITS ETF 8,500 305,926 5.82 Erste Group Bank AG 0.758% 19/07/2017 EMTN 250,000 239,775 4.56 Turkey Government International Bond 7.5% 14/07/2017 200,000 197,490 3.75 Novolipetsk Steel via Steel Funding Ltd 4.45% 19/02/2018 200,000 191,292 3.64 KazAgro National Management Holding JSC 3.255% 22/05/2019 EMTN 200,000 190,799 3.63 JBS Investments GmbH 7.75% 28/10/2020 200,000 189,962 3.61 Export Credit Bank of Turkey 5.875% 24/04/2019 200,000 189,876 3.61 Hrvatska Elektroprivreda 6% 09/11/2017 200,000 187,149 3.56 Turkiye Garanti Bankasi AS 4% 13/09/2017 200,000 186,422 3.54 Intergas Finance BV 6.375% 14/05/2017 200,000 182,017 3.46 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 200,000 173,551 3.30 Development Bank of Kazakhstan JSC 4.125% 10/12/2022 200,000 161,804 3.08 Tata Motors Ltd 4,400 159,676 3.04 Nestle SA 1,800 124,363 2.36 FedEx Corp 800 121,816 2.32 Siemens AG 1,200 115,591 2.20 HUGO BOSS AG 1,100 114,496 2.18 Baidu Inc 600 111,689 2.12 International Personal Finance PLC 5.75% 07/04/2021 EMTN 100,000 102,814 1.95 Thomson Reuters Corp 2,900 102,563 1.95

Sales

Security Name Quantity Proceeds (EUR) % Net Assets

Erste Group Bank AG 0.758% 19/07/2017 EMTN 250,000 245,969 8.63 Turkey Government International Bond 7.5% 14/07/2017 200,000 201,318 7.07 Severstal OAO Via Steel Capital SA 6.7% 25/10/2017 200,000 195,231 6.85 Hrvatska Elektroprivreda 6% 09/11/2017 200,000 191,864 6.73 Development Bank of Kazakhstan JSC 5.5% 20/12/2015 EMTN 200,000 191,380 6.72 SOHO China Ltd 5.75% 07/11/2017 200,000 190,441 6.68 SOURCE MSCI EMERGING MARKETS UCITS ETF 4,000 154,339 5.42 MFB Magyar Fejlesztesi Bank Zrt 5.875% 31/05/2016 120,000 132,665 4.66 Baidu Inc 600 109,691 3.85 Gazprom OAO Via Gaz Capital SA 5.136% 22/03/2017 100,000 106,752 3.75 International Personal Finance PLC 5.75% 07/04/2021 EMTN 100,000 102,351 3.59 Gazprombank OJSC Via GPB Eurobond Finance PLC 3.984% 30/10/2018 100,000 98,413 3.45 JBS Finance II Ltd 8.25% 29/01/2018 100,000 94,742 3.33 Vimpel Communications Via VIP Finance Ireland Ltd OJSC 9.125% 30/04/2018 100,000 91,612 3.22 Kazatomprom Natsionalnaya Atomnaya Kompaniya AO 6.25% 20/05/2015 100,000 90,070 3.16 American Express Co 1,300 83,581 2.93 McDonald's Corp 910 82,179 2.88 Alphabet Inc 130 77,024 2.70 Google Inc 110 62,100 2.18 Microsoft Corp 1,500 61,802 2.17

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